What Would You Do? A Poll.
An open-ended question, depending on what all the exit-strategies are out there, and if this shows any potential to you.
A neighbor has his house on the market (FSBO), appraises around $170k, willing to take around $135k. He's busy, 30 miles away. I can market it, show it, or I can buy it and lease it out.
This is a pretty one, no real work needed.
What do you do?
I'd find out if this is a sub2 candidate...whats the mortgage balance...monthly payments...interest rate?
Next see if your neighbor is willing to wait for whatever equity he has between the mortgage balance and $135k.
Too many options at this point.
just curious, why not offer him less, say 120k then wholesale for maybe 150k and then end buyer has equity. win-win-win
or
buy at 120k and sell for appraised value of 170k , win-win
or something along those lines
amynewbie
I think what you're suggesting - seems like the obvious win-win - is an option or assignment.
I'm wondering what the real difference between a purchase option and purchase contract w/ assignment is. Why use one over the other, what happens at closing with one versus the other, etc. Anybody with an explanation?
Call me boring but I'd be tempted to just buy it and keep it. I would use an interest-only convertable, move in for six months, then find a tenant and move on to the next one. Where in Houston is it?
I'd comp it out real good. If it's on the market at 170k, but hasn't sold, it's not worth 170k.
Appraised value and what buyers will pay aren't always the same.
Good luck!
I believe the poster said "it appraises around $170k", that doesn't mean it is on the market at this point.
I would suggest to talk to the owner, and find out what would be of interest to him, does he need cash quickly.... maybe he just needs some cash.. maybe is ok to carry...
Quote:
On 2005-01-06 21:49, regal wrote:
I'd comp it out real good. If it's on the market at 170k, but hasn't sold, it's not worth 170k.
Appraised value and what buyers will pay aren't always the same.
Good luck!
I was just going off his post -
"A neighbor has his house on the market "