Possible Lucrative Deal
Seller has a fixer upper on 5 acres in nice area of town. He says he owns his home outright and his neighbor's home sold for $550K two years ago.
Seller is moving out of state and says that he is, "sick of the property." He has done some work on the home.
I am a newbie with no deals under my belt yet and I do not know how to fill out a Real Estate Purchase Agreement. I want to help solve this guy's problem and get some hands-on experience.
I appreciate any input.
Troy
p.s. if you need any more information from me just write and ask for it or email me
First thing you want to find out from him is how much is owed on the property if he has a mortgage, and is that mortgage assumable. Then get an idea of whether he is more interested in cash or in having his price met. If the latter, he should be willing to take a note on the place.
Also, knowing that the neighbor's house sold for X is insufficient. You need to find out in that transaction the value of the land and the value of the house. The value of the land will be stable within a block, but the value of the house can fluctuate wildly.
Lizmichael, you stated that I should do the following:
First, find out from him is how much is owed on the property if he has a mortgage, and is that mortgage assumable.
How do I get accurate information about what is owed on the property and whether the mortgage is assumable?
Second, get an idea of whether he is more interested in cash or in having his price met. If the latter, he should be willing to take a note on the place.
How do I phrase my question to find out if he interested in cash or taking a note?
Third, find out the value of the land and the value of the house. The value of the land will be stable within a block, but the value of the house can fluctuate wildly.
What is the best way to find out the value of the land and the value of the house?
Troy
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troyentrepreneur
You first need to find out if your friend wants to sell. Just ask him "Are you looking to sell? What are you going to be asking for the property? Is the title free and clear or is there any existing mortgage on the property?" This should get you the initial information you need.
Next would be to find out if he is will to help with the finance by asking " Are you willing to do a seller financing?" From here you could go in several ways, it just depends on his answers.
Good Luck !!