First Property
Hi All! I have found a house and am not sure what to do. I want to FLIP or ASSIGN it. It was built in 1904, Victorian, 95% restored. Only needs a new 2-car garage door, outside paint, either paint or wallpaper in utility room. Its a 5/2/2, 6 WBFP, 1 Acre, 3000 sq ft. Rewired in 2000, new roof 2001. They need to close YESTERDAY! It appraised last year at 175K, BEFORE some of the updates. They are asking $130K, which is the conventional mortgage payoff. It seems that every investor I speak to wants to offer WAY Low..would this be a good deal? I would like to make about 10K.. Is that unreasonable? HELP?!!! 
AND thanks...Bonnie
Why are the sellers asking 130k if it is appraising for 175 before the updates??
They are relocating. Have closed on new house. They just want out. Bonnie
BONNIE:
Have you read my previous postings on this Website?
SEARCH: Equity Holding Trust
And I'm sure that you will find a MORE PROFITABLE SOLUTION to this dilemma (NOT YOURS but for theOWNERS)
The EHTrust can simplify their lives again.
You did not give any details about the new house the couple recently purchased.
Do They Need CASH for their Equity?
Are they STUCK with TWO MORTGAGE Notes?
You can set up a Land Trust keeping the couple's name on the Title and you giving a beneficial interest inside of this Trust; which would allow you step in to an ownership capacity of the property.
Then you could Rent2own (sub-Lease it out) to a new buyer!
This buyer is called a Resident Beneficiary whom takes care of All expenses of the home including YOU.
It would work out like this:you sell @ 100% financing of the Full Fair Mkt. Price (if you choose to) of $175K and interest rate of say 10%
You charge a higher interest B/C of your risk of selling No Money Down/No Credit Check, etc!--(Remember they would be assuming the original loan note @ $130K so your payments on the underlying note is less)!
Sounds a lot MORE PROFITABLE DOING IT THIS WAY $40K Equity + A POSITIVE CASHFLOW EVERY Month, and Tax-write-offs!
Beats settling for $10K that you may never see!
Contact me and I'll assist you in setting up an EHTrust and/or closing your deal with the owners!
Sincerely,
Derrick Ali
517.414.8478
[addsig]
DaliOne, doesn't the seller have to stay on there own mortgage? Or does everything switch over 6months to 1year after the purchase is completed??
This deal sounds like a pretty motivated seller so, it just might work.
Hi Derrick and Hi Joel. I just found out last night, They close on JUNE 24. I had misunderstood. They are not looking for any equity. They just need to get rid of this property. I am not interested in the landlord thing yet. I am in dire straits and need some immediate cash for myself. I am meeting with them tomorrow and will hopefully learn more. I thought my best deal was to assign it or flip it. Am I not understanding something? You said I may never see any money. Please explain. Thanks...Bonnie
<IMG SRC="images/forum/smilies/icon_rolleyes.gif">
Oh, Derrick, No I haven't checked out EHTrust yet but I will. Thanks for any advice you can help me with!! [ Edited by Bonnie on Date 05/31/2002 ]
What I meant was that if you wholesale the property, you can just get your check from the closing attorney after you close with one of your buyers. I have never done a deal like this but this is how I understand it.
That's how I understand it also. I am intending to sell to another investor. At closing, I should rec. a check for whatever fee I want to charge, I will attempt to shoe like I see it...is this correct?
$130,000. 'cost' Mortgage Payoff
$ 10,000. Bonnie's Assignment Fee (or even just $5000.00)
$140,000. sale price to investor
He has instant equity, right? Am I on the right track?
Thanks...Bonnie
You are on the right track Bonnie!
I didnot mean to imply you never CAN see the $10K only what's making it happen for you today that didn't yesterday?
You can use the Equity Holding Trust to GET UPFRONT CASH And A MONTHLY POSITVE CASH FLOW WITHOUT BEING A LANDLORD OF ANY SORT!
Your Resident Beneficiary takes care of ALL Expenses, Taxes, Toliet, Tub, Termites, Roof, Wires, Plumbing etc. and pays off your Equity interest in the home after 2-3 yearsPLUS TAX WRITE OFFS!
THAT'S 24-36 Months of CASH IN YOUR POCKET on top of the 10%-15% Down they need in order to Move in!
Much better than $10K quick and easy with no tax protection!
You Think?
Derrick Ali
[addsig]
Hey Derrick. OK. I think I understand better. I don't know that this will be a good option for me on this particular property although I will definitely call and talk more with you regarding how to do this. I have a meeting tonight with the property owner and am writing a contract on it. I think I want to just assign this one right now (I have another investor lined up to assign it to) because I need CASH RIGHT NOW! Are you saying I can get quick cash your way too? I will do some studying and will use this technique in the future!! Thank you....Bonnie
BONNIE:
We had investors within our network to get Buyers with 10-15% the same day they ran the AD for the Home "LowDownPayment No Credit Check 10-15% Moves You In"
In your case that $18,500 or %85 More than your investor will pay you tonight.
The owners can be FREE from the More obligation-"letter of Credit" from the Trustee RE: their current loan.
--so this won't affect them with the new home they've just bought.
And it will help them to sleep a little better too.
Call regarding your next deal to create a more profitable/flexible sale!
Best Regards,
DERRICK ALI
[addsig]
Hi All. I signed my first contract to purchase Sat. night!! WhoooHooo!! Everyone is right....ya just have to
DO IT!! What a feeling. It's in Cleburne, Texas if anyone is interested. Cleburne is S. of Ft. Worth about 25 miles. I am looking to assign this house. If interested, email me and I will send you specs.
bonniesanders02@hotmail.com.
Derrick, thanks for your info and I will call you for future deals. Bonnie