Okay, what if the homeowner doesn't know he/she is on the sheriff sale list for , say the following month? How would you, first, break the news, second, get them to be willing sellers? :-?
What's wrong with the standard, "I was doing research at the courthouse..." line? "What can I do to help?" They DO know that they have missed payments, since they are the people NOT sending them in. You are performing a service, not unlike the UPS guy. You are there to present options for them, and to guide them to the option that will work out best for both you and for them. They need to be motivated, and the first step is letting them know when the sale is going to be.
Thank you, that sounds good. Now, chances are they owe, owe, owe, do I offer to purchase for what is owed, payoff the note, save them from having a foreclosure on their credit, and then sell for fmv, hopefully making some cash off the deal, and possibly helping them at closing with some extra cash to move?
Sure...if the numbers work out. You want to buy low enough so that you can sell to a rehabber, or a landlord, or possibly a end user. Rehabbers want to buy in the 65%-70% LTV area so that they can get hard money. Landlords want to buy in the 80% range, so that they can cash flow. End users will pay full price for your property. Make sure there's enough room in the deal for you to make some money. Not just $10K, either.
I hear ya. The good news is I am a rehabber, and although I am not intersted in landlording, I still would like to lease purchase. However, I do have another question, I'm not sure if this is the right forum, but, what if I took out a construction loan, with the guarantee of increasing the value of the home, say 25%, borrowed 80%, then had nine months to get a buyer in, assuming all goes well with the the current sellers?
What's wrong with the standard, "I was doing research at the courthouse..." line? "What can I do to help?" They DO know that they have missed payments, since they are the people NOT sending them in. You are performing a service, not unlike the UPS guy. You are there to present options for them, and to guide them to the option that will work out best for both you and for them. They need to be motivated, and the first step is letting them know when the sale is going to be.
Thank you, that sounds good. Now, chances are they owe, owe, owe, do I offer to purchase for what is owed, payoff the note, save them from having a foreclosure on their credit, and then sell for fmv, hopefully making some cash off the deal, and possibly helping them at closing with some extra cash to move?
Sure...if the numbers work out. You want to buy low enough so that you can sell to a rehabber, or a landlord, or possibly a end user. Rehabbers want to buy in the 65%-70% LTV area so that they can get hard money. Landlords want to buy in the 80% range, so that they can cash flow. End users will pay full price for your property. Make sure there's enough room in the deal for you to make some money. Not just $10K, either.
I hear ya. The good news is I am a rehabber, and although I am not intersted in landlording, I still would like to lease purchase. However, I do have another question, I'm not sure if this is the right forum, but, what if I took out a construction loan, with the guarantee of increasing the value of the home, say 25%, borrowed 80%, then had nine months to get a buyer in, assuming all goes well with the the current sellers?