Deal Analysis 1
Hey guys,
i've been talking to folks letting them know what i do and i have received a few calls.
Got a guy with a 3/2 who bought the home his mom was renting, now they split the mortgage which he hates. - paying 530 per month,
says he owe 49k [but he got a 44 k loan in '01 so i'll ask if theres a 2nd]
appraised for 60 2yrs ago before he made some updates, now it should go for 63/65 according to him - needs paint inside & out, & a storm door on the back.
asking 53/54k to sell quickly - [comps at 68.5k which he doesnt know - 53k/68.5k=78%fmv]
What should i offer? Thinking of taking sub2 or L/o if possible depending on his motivation. The fact that he is sick of splitting the note with his mom may not be enough motivation to sell on terms.
Verb[ Edited by verbatim on Date 02/01/2004 ]
Since you really don't have that much invested in this project to start with why not offer him what he says he owes and tell him you'll take care of all the closing costs. That way he walks away from the house free and clear of any obligation. Most likely he won't accept that offer but if he does you have come out pretty good. Now if he rejects your offer hopefully he counters which will tell you his motivation.
Start low...work your way upward if you have too...
Good luck,
Q
You need to supply more info to get a good opinion on what to offer.
What is your exit strategy? Rent, retail, owner financing?
What is your buying strategy?
How long will it take to fix? How much will it rent for?
Appraisals mean little to nothing, especially IF they were done for a refi or equityline. Good accurate comp or appraisal is the best measure of FMV. IF the appraisal was a true FMV report, based on average appreciation, the seller's estimate of current market value is more on the money.
Roger
i was thinking of taking sub2 and l/o'ing it as a exit strategy.
You can offer to take over the payments "subject to" and then only if is not acceptable to seller, try L/O, option to sell or cash to exiting loan. Interviewing the prospects is the best time to learn what the home owner needs. Information received should help you choose the right technique to make an irresistible offer.