Found a possible Subto with lots of EQuity!
Found a home with lots of Equity, selling price is 149k it only has 1 mortgage with a balance of 70k, 79k in equity, I was thinking of beating down the equity (the owner has another home he needs a roof for and I was thinking of having my workers handle that for him in trade for some of the equity) to at least half and have the owner carry the balance until my client refinances. would this be the way to handle this or am I looking in the wrong direction? 
Askasalesrep,
Yes work the equity down as low as you can go. You know how to do this.
Then offer a second for the remaining balance with a 5 year balloon at 6% interest. You will be out of the property in less time so 5 years will be OK.
Show the owner if he put the money in the bank from a sale it will only pay about 1 1/2% interest, then show him what 6% percent interest will pay him monthly on the second.
The trade out for the roof should be the down you would have normally offered him, of course you are using a retail price for fixing the roof.
John $Cash$ Locke
Thanks $CASH$ I'll do just that and post the results on Saturday evening, I'm meeting with this client this Saturday morning.
by the way, I cold called this one.
How sweet it is!!!
OK READY? Follow up from last post:
Met with my client for the house at 149k, the house is very nice, I really didn't have alot of flaws to work with but here gos:
Ranch home, 3bdrm, 2bth, house color was blue (blaw) rain gutters were plugged, roof looked funny on the walk in however, I cased the place with my construction partner, the house needed work, the paint was crap, the roof line looked funny walking in, --- fire place, 2 car garage, 3 bdrm, 2 bath, hugh back yard, ceilings are great...
OK, STRAT,
He wants 149k, will assign current loan of 70k, balance in EQ is 79k, he wants 1/2 of the EQ up front
will carry the balance at 6% (love the math - Thanks $CASH$) But found problems with the home!!
Beating down the EQ:
COST OF HOME
149.000
5.000 CARPET, MINOLIUM, COUNTER TOPS
-------
144.000
1.000 FLOOR IN BATHROOM REPLACE
-------
143.000
1.500 SAGGIN ROOF - 6 SLAGS
-------
141.500
.800 CHIMNEY REPAIR
-------
140.700
70.000 BALANCE ON MORTGAGE
-------
79.000 IN EQUITY
I NEED TO EAT UP 50% MORE OF THE EQ -
CAN ANYONE THINK OF ANYTHING ELSE - HE IS READY TO MOVE...
1.: AT THIS TIME I WILL, HAVE HIM ASSIGN, CREATE A NOTE FOR HALF OF THE EQ, HAVE HIME CARRY THE BALANCE AT 6% WITH A BALOON IN 5YRS. MOVE IN A POSSIBLE 15% DOWN 9% AND RE-FI IN 24MNTHS....(COLLECTING THE BACK END)
LET ME KNOW!!
steve@askasalesrep.com
Steve,
Now that we are getting down to the nittty gritty, what is the true Fair Market Value of this property?
John $Cash$ Locke
What about the cost of Real Estate commission that he no longer has to pay.
That should take another 8900 out of the asking price. Then there is the closing cost that they will not pay. That's another 5k.
Good luck
Steve