"Need Help Urgently!"
I have a lady we should be meeting with this weekend. I have spoken to her via phone and established we would meet this weekend after I call her on Saturday. She is paying the mortgage on her grandma's house who is elderly . She is 2 months behind for a total of 4388. The amount owed in mortgage is 244k. The home was appraised at 350k 4 months ago. She wanted to sell for 320k. I talked to her bout sub 2 but not with any numbers involved. I was thinking of offering her 50k in cash. Her plans are to move to another home with her sons and grandmother. She talked in our conversation about using the house as colleteral for this and about giving her grandmother some moneyshe also said 35k needed for down payment on a house she would move into. I want to offer her 50 k to cover her moving expenses and downpaymenst and money for her grandma and offer to pay the arrears and continue making the loan payments via sub 2 if she will deed me the property. I was thinking of selling the property to a person other than an investor for 200k or flipping it to an investor for less say a 30,000 k profit. Please help me this would be my first deal and I want to do it right.
Thanks in advance
Sounds like good numbers, Why sell for 200 withan apraisal like www.that.More than you pd?
I commend you for want to help this lady. Make sure she understands what the subject to is. Reselling to another investor is a good Idea and you're not being greedy about your cut.
You may want to have an appraisal done by your apprasier. Ask him for both a low ball and a standard figure on the worth of the home, it shouldn't cost any extra. You may want to increase your profit cut a little. Most areas had a good late spring, early summer in home sales so your prospect may come in a little higer that the other one and make sure her apprasial was by an apprasier (get a copy).
I only suggest this becuase many of the appraisals that sellers say they got are not by an appraiser but by a realtor or a construction/builder person or even a friend. Not that there is anything wrong with that but only an appraisers evaluation holds up well when valuing the resale of the property.
This will help you determine exactly where you stand.
Good Luck sounds like a deal I would do.
I wonder how much equity this woman
has in this house? More than 50k that
you are offering.
I wonder how much she has already
paid on the house and how much
she really still owes on the mortgage
Help me understand.
It seems that the amount that would be invested totally in this deal is $54388 cash with $244 loan due with a total of $298,388. Now selling it for 30K profit brings the need investment up to $328,388. Is this worth the hassel for an investor with less than 25K equity?
Less than 25K in equity can sometimes be okay it depends on your goal with the specific property and increase in property values. Remember this is the time of year that tax appraisers are out re-appraising what is less could be more in a matter of a few months.
I don't think I would do this deal unless I had it reappraised by my appraiser to check the true MV at this moment. He said her appraisal is a few months old. If sales in the area did very well the appraisal she got may be low or high.
just my 2 cents. If the area is a high appraisal increasing area then I may even do a neg cash flow on it for a few months.