Help With Possible Deal?

Comments(7)

• 
  wexeter30th July, 2003

  Do they want to cash out of the real estate, or would they want to do a 1031 exchange into another property near their current residence? It sounds like they are holding this property as an investment property, so they could avoid the capital gain taxes by doing a 1031 exchange.
  [addsig]

• 
  JohnMP30th July, 2003

  It is not an investment property for them. They just want out of the property a.s.a.p.

• 
  knucs31st July, 2003

  Hi John,
  
  Got a call with worse numbers than that yesterday. Do they know what it would cost to sell thru a realtor? 7% realtor plus 3 % closing fees = 19000
  190000 - 19000 = 171000 !!! Plus 2-5% holding cost that it takes to sell for a couple months = (SAY)@ 2% =3,800
  171000 - 3800 = 167,200 Now you could take it off of their hands in less time and less hassle than thru a realtor if they PAY YOU to take their house off of their hands!
  They need to be hit upside the head with the reality of their situation, & if motivated enuf, you are there to help them NOW, not in 3 months.
  
  Hope this puts things into perspective.
  Kelly
  [ Edited by knucs on Date 07/31/2003 ]

• 
  JohnLocke31st July, 2003

  JohnMP,
  
  Glad to meet you.
  
  This is a very viable Subject To deal, so just do your due diligence, get the deed and find a buyer.
  
  John $Cash$ Locke
  
  PS: I must have read your post wrong I did not see anything about a 1031 exchange happening nor did I see any reason for these sellers to PAY YOU to take their house they are one month down how are they going to pay you to take their house?
  
  Just give them a few dollars, there is plenty of room for you to make a decent buck without getting overly greedy. They already understand that with using a Realtor to sell they are not going to come out ahead this is why they cancelled the listing.[ Edited by JohnLocke on Date 07/31/2003 ]

• 
  Stockpro9931st July, 2003

  This is what is so great about CRE! It helps you think outside the box. With closing and realtors fees there is no money in this property with a 15k spread. But.. as John said you can go around all this subject to and forget about those fees.
  
  Good Luck!
  [addsig]

• 
  JohnMP31st July, 2003

  Great advice guys! Looks like "Sub-to" is the way to go on this and then lease option to a t/b.
  
  My biggest concern is what if market rents come in below their mortgage payment? Is there a way to structure this where if that is the case, the sellers agree to pay X amount each month to make up the difference until it is sold? Could I set up an agreement that says that I will not make their mortgage payment each month until I receive their portion of the monthly payment?
  
  Any "creative" ideas are welcome
  
  Thanks again, my friends!
  
  Sincerely,
  
  JohnM

• 
  investorkim31st July, 2003

  If you aren't familiar with the rent amounts in the area, just check the neighborhood while you are there and check the paper today!
  Yuo mentioned that the home is 1 year old, I'm not sure where you are or the market, but I do know that here in FL, often times, if you get in a neighborhood during construction, you could boast $15-$20,000.00 in equity once the subdivision is complete-
  I'm conservative and would feel awkward asking for a monthly spread, but an associate of mine almost always asks for an additional month's payment in situations like this and he gets it! He explains that he is going to spend some cash to "tidy" up the place and market it-your sellers sound motivated and you might find it easier to stroke an advance month from them rather than each month's protions, plus with them being "EX", it might get sticky!