Whats The Options?
Hello guys, I got a headache trying to figure out what to do. I just found a home valued at 250k ex loan of 184k 10k in default and nod was sent out 2months ago, a husband in denial and a wife very willing. House is a fixer, needs 26k to 30k and property is full of trash. Some of the trash is good trash. (Approx 30tons of junk cars, trucks and tractors.) Were getting $200 a ton just 4miles from property. Value after repairs and cleaned up 325k. This is all good, right? With all the creative ways I’ve been reading about here I’m alittle confused on what to do and how to do it. I have a 740 credit score and three banks that gave me their approval and 20 k cash. Im sure I have many options I m just confused on which ones to use. I don’t think I have very much time before the bank forecloses and I don’t want to call the bank until I’m sure of what I want to do. Have some fun with the options that will work on this, I would like to from all of you and the many ways that you would make a purchase on this property given what I have to work with. Thank you for taking time to read this and for any advice that you might have.
If this is in the wrong forum please forgive me. Since Im new at this, I placed it here.
Seems like you are familar with this area. All you need to do is make the owners an offer for 185k. Its not a short sale.
If they say no, then call the lender and make sure they know you are interested in taking over the mortgage. If that doesnt work, let it go into forclosure...pick it up during the auction.
Personally, the numbers dont look good enough. paying 184k+30k for a 250k property isnt a great deal. And after the purchase youll probably neg cash flow...but go for it if you really like the place.
IMHO
Quote:
On 2008-06-22 16:10, wrote:
Personally, the numbers dont look good enough. paying 184k+30k for a 250k property isnt a great deal.
rglover548,
Would paying $185K and putting $30K into rehab make this a better deal if the ARV is $325K?
"Would paying $185K and putting $30K into rehab make this a better deal if the ARV is $325K?"
Yes, New Kid! i said at 250k its an ok deal. But at 300k ++ thats a no brainer..make the offer today property!
Sorry, i didnt notice he said its worth 325k fixed up in the middle of the paragraph. I dont understand the 250k reference, thats the number i noticed.
But i suspect this poster is way off on this properties value.
Thanks for responding to the post, a similar property that had been cleaned up and 30k in rehab sold for 339k last month. How ever this was a 3bd 2bt and sold as a REO. The post property is a 2bd 1 bt. .
It’s amazing around here. Both of these properties sold in nov and dec of 05 for over 650k. Some of my areas have over a 60% drop in MV over the last 30 months.
Yes I was approved by the conventional banks. Had to in order to make offers to the REOs. Most seem to want the option of making a new loan with their sale.
By the way here’s my plan. Give the owners 12k to help them move to new location. Buy on sub- to, pay the 10k in late payments and penalties, use the junk money for cleaning and part of the rehab and borrow the rest. ARV 320k and refi at 80 LTV and either hold and rent or sell. What do think?
Again thanks for the responses and all the suggestions. You guys rock.
And please let me know if this post is heading in a different direction and should be placed some where else.
OH ya In reference of the 250k, that is the current MV in the shape its in. thanks again