First Lead!!! Should I Do It ?????!?!?
I ran across a preforeclosure w/ existing mortgage balance of less than $30k and a judgement of $18k. The owners have agreed to "quit calim" property over to me. This makes it about $50k to satisfy the mortgage and judgement, and the prop has an ARV of $110k or more (min comps). Is this all that's needed! How would the gurus recommend I take over the property? Could I get hard money on a deal like this? Thanks in advance!
Is it in need of repairs? If so have you estimated the costs?
I say $10-15k and a little sweat equity should get it to ARV. Problem is, being new to this I have no hard money to make this work. Should I take a chance and just try to "subject to" the prop and ignore the old judgement until approached and discount it with cash?[ Edited by REI_SIMILAC on Date 02/01/2004 ]
What kind of judgement is it? Is the house in foreclosure? I would at least try to discount the judgement to create more equity. Either way, with the $10-$15,000 in repairs, you are still okay. I would also get the deed right away before the sellers change their minds or something. You could wholesale it as, fix it up and retail it. The sky is the limit on this one. What area are you in. In Philly we have plenty of hardmoney lenders. Go to www.camerondirect.com , they should have a list of hardmoney lenders.
Mimi
If your numbers are correct, you have a very doable deal.
I suggest you line up a HML just in case the deal turns out to go that way. You're within the 65-70% of FMV, so you're OK there.
But your first priority should be to try to get it Subject 2.
Make sure though you know your way around the paperwork.
John $Cash$ Locke has put together a great course on that, which will give you everything you need to make it work for you. It sure worked for me.
Keep posting on your progress.
Happy investing.
[addsig]