Possible Deal. Need Some Guidance
Hello all, I finally got off my duff again and thought I would start trying to find my elusive first deal. I say it is elusive because I have, in the past been chased away by fear...and ignorance, don't forget about the ignorance. I called a gentleman in foreclosure and found out he is going through divorce and while he was sending payments to his wife, she was not paying the bills. The house went into default and she told him he can have it back. He owes a little over 112,000 with fees. He is about 4 months behind. payments about 800. The only exit strategy I can see here is a sub-2 deal. Either that or short sale (not sure if it's even a good candidate.) He says the house is in good condition. I will be meeting with him next week to find out all of the exact numbers and condition of the house. I was thinking I could offer to buy the house subject to, and get enough of a down payment to cover back payments. Then of course try to make a little monthly spread, and a little up front. I don't have much capital to start with and was wondering how to approach this. I was listening to a guru cd and he said to make it clear that you are reselling and not promise to make any payments or pay arrears unless you find a qualified buyer. Any opinions would be great.
Thanks,
Ryan
What is the property worth and how much could you sale for? What could you get out of the monthly?
Best to you
Sire
If it makes sense to pay the back payments yourself before you find a buyer - they take it subject to... As long as you think you can get an up front deposit of about double what you paid in back payments... Is there equity in the property?
If there is little or no equity in the property - a short sale just might be the ticket here...
Good Luck!
[addsig]
Comps came back at 90-120,000. So there is little, if any equity. He says the property is in good shape. I will be meeting him later tonight at the house to find out for sure. I am going to ask him for the exact numbers, monthly, total payoff etc. I will probably make an offer tonight, if I can find a way to make it work for both of us. My exit strategy is to sell Contract for deed to a buyer that has enough cash to pay back payments (with a little profit for myself.) If a short sale would be my best option here, please let me know.
Comps came back at 90-120,000. So there is little, if any equity. He says the property is in good shape. I will be meeting him later tonight at the house to find out for sure. I am going to ask him for the exact numbers, monthly, total payoff etc. I will probably make an offer tonight, if I can find a way to make it work for both of us. My exit strategy is to sell Contract for deed to a buyer that has enough cash to pay back payments (with a little profit for myself.) If a short sale would be my best option here, please let me know.