Give us more specifics. How much upside down? 1st, 2nd and what else? What are the rental prices in your area? Would it cover your expenses if you were to do a L/O? The real estate in CA continues to go up very nicely. What kind of area is the property in? Any houses that are valued higher than this one that may pull its value up in the future? How do you really know the prop is upside down? Who did the comps?
Is he making his payments? If he isn't and forecloseure is in the future it's a perfect short sale candidate.
Does the Seller KNOW he's upside down or is he in denial? .....those are two VERY different sellers? If he KNOWS he's going to take a loss, let him know that a loss he takes now is better than a loss he waits 9 months to loose (holding costs, advertising, time, etc).
How many mortgages? Could you take it sub. to the first, but not the 2nd, etc?
Down from T/B 5% of $200k is $10k.
2 year lease term
Purchase price at end of lease $240k (10%/year increase)
Rent: $1500
This would cover PITI at break even.
Can they get more rent, do you think? Or is that a fair value?
What % of the rent is given as a credit towards purchase typically?
No Kevin, you do not have a desperate seller on hand!! You have a fellow investor who asked for some creative advise from other investors. Are you that stupid that you post this on the same website I frequent? You always give advise in situations where you are not sure of what you are really saying? You gave a good suggestion, then turn around and try to figure out how to make a deal on it? HAHAHHAA...what a douche bag.1st I use this site AND I explained that I am an investor, so I know what is going down! Wow, people's stupidy amazes me. For everyone else's knowledge , I put a topic on the beginner forum: Help With Personal Residence on 8/28/2003 which explains the situation at hand on my 1st house and had prior no knowledge of how real estate worked,etc. I explained I was a fellow investor started by me getting so burned on my stater home, and only wanted some creative advice. I'm sorry, I may get put into a penalty box for awhile or warned but WHAT A DICK! Kevin: F*CK OFF[ Edited by 180degrees on Date 08/29/2003 ]
I'm sorry that you think that I was being unethical. I was just trying to make sure I was giving you sound advice. I apologize if this looked wrong to you. Like I told you, I don't do lease options, have never done them. I was just trying to point you in the correct direction. Did I ask for anything in return at all? As always, the best of luck to you. Please keep in touch and let me know how it turns out to you.
Are you going to go with a sales price equal to what he owes?
Give us more specifics. How much upside down? 1st, 2nd and what else? What are the rental prices in your area? Would it cover your expenses if you were to do a L/O? The real estate in CA continues to go up very nicely. What kind of area is the property in? Any houses that are valued higher than this one that may pull its value up in the future? How do you really know the prop is upside down? Who did the comps?
Dunno. Trying to get all of the info that you just asked about.
I'll post again when I find out...
Somebody here said there is no such thing as a stupid question, so here's mine
What's an upside down seller?
When mortgage debt is higher than home value. Takes money out of your pocket to sell.
Is he making his payments? If he isn't and forecloseure is in the future it's a perfect short sale candidate.
Does the Seller KNOW he's upside down or is he in denial? .....those are two VERY different sellers? If he KNOWS he's going to take a loss, let him know that a loss he takes now is better than a loss he waits 9 months to loose (holding costs, advertising, time, etc).
How many mortgages? Could you take it sub. to the first, but not the 2nd, etc?
good luck.
Owner realizes the deal. Is making payments. Not on NOD.
FMV $200k
1st: $162k
HELOC: $40k
Monthly PITI: $1500/month
Rental comps: $1200/month
Nice house. Nice neighborhood.
I'm thinking the only way out is a lease option.
Down from T/B 5% of $200k is $10k.
2 year lease term
Purchase price at end of lease $240k (10%/year increase)
Rent: $1500
This would cover PITI at break even.
Can they get more rent, do you think? Or is that a fair value?
What % of the rent is given as a credit towards purchase typically?
Thanks in advance,
Kevin
[ Edited by kevbostic on Date 08/29/2003 ]
No Kevin, you do not have a desperate seller on hand!! You have a fellow investor who asked for some creative advise from other investors. Are you that stupid that you post this on the same website I frequent? You always give advise in situations where you are not sure of what you are really saying? You gave a good suggestion, then turn around and try to figure out how to make a deal on it? HAHAHHAA...what a douche bag.1st I use this site AND I explained that I am an investor, so I know what is going down! Wow, people's stupidy amazes me. For everyone else's knowledge , I put a topic on the beginner forum: Help With Personal Residence on 8/28/2003 which explains the situation at hand on my 1st house and had prior no knowledge of how real estate worked,etc. I explained I was a fellow investor started by me getting so burned on my stater home, and only wanted some creative advice. I'm sorry, I may get put into a penalty box for awhile or warned but WHAT A DICK! Kevin: F*CK OFF[ Edited by 180degrees on Date 08/29/2003 ]
Jim,
I'm sorry that you think that I was being unethical. I was just trying to make sure I was giving you sound advice. I apologize if this looked wrong to you. Like I told you, I don't do lease options, have never done them. I was just trying to point you in the correct direction. Did I ask for anything in return at all? As always, the best of luck to you. Please keep in touch and let me know how it turns out to you.
Thanks,
Kevin