NEED SOME ADVICE
I have a property I am looking at. The seller is 2 months behind and has already said she is not making anymore payments. She said If she can't sell it she is gonna let it go back to the bank. The selling price is $103k and the comps in the area have the FMV at about $135k-$139k.
She has it listed with an agent right now. My agent is the one who found this one for me. Both agents are willing to take 1% cut in commission and my agent said he will take 4% at resale instead of 6% this makes the numbers work even better. Here is the problem I'm in the middle of 2 other deals right now and I don't want to take out another loan. Is it feasible to ask the lady to do a land trust with me and if she agrees what do we do about realtor commission, I suppose I just come out of pocket with that. Is there any other way to do this. Any advice is appreciated. Also how do any of you feel about cracked slabs. This property has one I have an estimate of $4500 to fix it with 100% gaurantee. The sellers realtor tried to get the bank to do a short to cover cost of slab issue but they said no. (still wondering about that) The bank knows she is not making any more payments and their gonna have to foreclose and they said they are willing to let it foreclose rather than do a short for $5k to sell it? That doesn't make sense to me. Anyway any help is appreciated!!! 
Moving this to Foreclosure/pre-foreclosure forum as I think it will get more exposure there.
Quote:
On 2003-11-22 17:39, MIKEDEVALL wrote:
I have a property I am looking at. The seller is 2 months behind and has already said she is not making anymore payments. She said If she can't sell it she is gonna let it go back to the bank. The selling price is $103k and the comps in the area have the FMV at about $135k-$139k.
She has it listed with an agent right now. My agent is the one who found this one for me. Both agents are willing to take 1% cut in commission and my agent said he will take 4% at resale instead of 6% this makes the numbers work even better. Here is the problem I'm in the middle of 2 other deals right now and I don't want to take out another loan. Is it feasible to ask the lady to do a land trust with me and if she agrees what do we do about realtor commission, I suppose I just come out of pocket with that. Is there any other way to do this. Any advice is appreciated. Also how do any of you feel about cracked slabs. This property has one I have an estimate of $4500 to fix it with 100% gaurantee. The sellers realtor tried to get the bank to do a short to cover cost of slab issue but they said no. (still wondering about that) The bank knows she is not making any more payments and their gonna have to foreclose and they said they are willing to let it foreclose rather than do a short for $5k to sell it? That doesn't make sense to me. Anyway any help is appreciated!!! <IMG SRC="images/forum/smilies/icon_confused.gif">
Hi Mike,
Based on your post, this may be a very good sub-2 purchase. You will still have to bring up the past payments, and RE commissions out of pocket. But you may be able to bring in a private money partner to make that happen for you.
Your exit strategy might consist of either a lease option (1-2 years) or a land contract with a short term balloon. Either way, make certain that you get a comfortable cash amount for consderation.
Best of Success!
BAMZ
hi mike, i agree with bamz- looks as a solid sub-2 could work out for ya..as far as the land trust goes, it could be tricky in louisiana, as the land trust is based on english law-and louisiana is a mesh of napoleonic laws and english..louisiana does not recognize a traditional land trust..it can be done though..contact bill gatton (look on google) he can tell you how it can be done in better detail. also, get a good attorney familliar in trusts..if you go CFD, check on the bond for deed- in louisiana its a little different. use this in concurrence with a trust..you could also purchase via lease/option, or , purchase bond for deed with rights to assign,or, flip this to a buy and hold investor..as far as the realtor commissions go..i negotiate a discount now or explain to them the extra cash to be made if they go the distance on a lease-option (full commission)..you could always ask the owner to submit to her agent a release of property...hope this helps a little..
regards-pat
Thanks for the input they were a big help. Now I know what direction to go. Thanks again!!!
BAMZ do you know any private investors that would be interested in taking this one on?
When Code Napoleonic and British Common Law Mix the resultant infusion is confusin both at statute, code and courts of common procedure.
The prior Poster is well checked out I congratulate him and will read his book anytime.
I hesitate to add other then to say that in my experience You have a meeting with the brokers and inasmuch as they are in line for nothing you offer them a future promise for releases this date. Then to the bank and inform them you are saving them from a fate worse then death. You will bring them current and all you want is their agreement. Which incidently takes care of any action of theirs on change of title. Do your fixup, or whatever from the difference in price there is something going on. Then perform on your future promises.
Please keep posting on this one I would like to learn. I know the Louisiana Purchase was a steal, but could they not have added a small little rider. Straight across to modified Common Law?
Anticipating knowledge Lucius
Sorry I forgot the key item. Cracked Slab.
Check your land, has there been any movement? Check for water under the slab. If necessary a small concrete drill and then poke and see if there is water if possible tweezer a little dirt out of your nicely drilled hole and see whats going on. Wet, clay, whatever. Also check the depth of the slab. 4" you hope, also check to see if they used R bar 3s and 4s tied together or did they just use a mesh. Enlarge the hole that should be near the major crack and see if the mesh is at the bottom of the pour or in the middle where all good meshes are supposed to be.
Corrections based on what you find. But before you start ask some rather penetrating questions. Has anybody driven a tractor thru the house. Has anybody pulled up a couple of really old rooty trees. Is the 4" waste line under the slab and has it stopped holding hands?
Etc. etc. Then either take a jack hammer and cut along the point of crack and then tie in more steel or dig down a bit and create a little concrete pad for the new corrective pour to sit upon. $,4,500 seems a little high. These small corrections I am listing can be done for little money but lots of noise and confusion. Is it multiple cracks? are they all in the same direction, if not do they radiate from a central spot.
Post back, I love these kind of problems, Yes I have had many, mostly cracked pipes that the dummys imbeded in the original slab. Made me very happy.
brathless Lucius
Hey Lufos
Thanks for the reply, great info. As far as the slab, it is from the same area of slab on both sides of the house and you can see where the cracks go up the wall in same spot on both sides of the house. The contractor that came out said 2 1/4" drop on one side and 2 1/2" drop on other side of house. So you suggest fixing it myself?? What about the resale of the house is that gonna be bad for the new buyer? JUst to make sure I understand, yu say I need to go to the real estate agents and tell them that where we are right now noone is gonna make anything, let me talk to the bank myself and work with the seller one on one and if I can get the deal to work then you both will get your commission and I will get the property? Is this about right?
Thanks for your help, hope to hear back soon.
THANKS
MIKE