Back Payments Question

I want to put a property under contract , and then market it wholesale and/ or retail.

The sellers are two payments behind, for about $4000 total. Whoever I assign the contract to will need to make these up, of course.

Will people consider this a negative, or could it actually be a positive (as an indication that it's headed for foreclosure, and thus a good deal)? Could it actually be a selling point, or would it be more likely to turn people away?

It will be a good, under-the-market price I'll be reselling for, in any event. Please advices, thanks.

Comments(6)

  • patrecejames17th September, 2004

    what is the price of your P&S contract and what is value of the property. If the spread between these 2 are too slim, then it's going to be very hard to assign this contract.
    [addsig]

  • Rambler17th September, 2004

    ...Are you thinking about a straight option? This would limit your exposure...

    Yes, exactly!

  • bnorton17th September, 2004

    Rambler,

    As a rehabber, I would not buy the deal from you at those numbers. There is no profit in it, even if it only needs a coat of paint.

  • Rambler17th September, 2004

    I know I coulnd't sell to a rehabber, it would be a landlord or retail buyer looking for a bargain.

  • bnorton18th September, 2004

    Still a slim deal my friend.

    I know you are busting your back side to get business in. I have seen your other posts. I applaud your initiative. There are deals out there, you just have to mix your drive with patience and the understanding that there has to be money left in the deal for the next guy.

  • JeffAdams18th September, 2004

    Rambler:
    It all boils down to the numbers. If it pencils and is a good deal, that is what matters. You should not tell your wholesale buyers what you are paying for it until they agree to buy it. If it is a good deal and there is room in it for you, who cares!


    Best Regards,
    Jeff Adam
    [addsig]

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