Posted by Bud Branstetter on August 24, 2001 at 09:43:57:
Remember that unless you want to invest money, you should not negotiate any more cash than your end buyer can pay. On a L/O 3-5%, on a subject to/trust/Pactrust 5% is reasonable.
A LIVE one!! (JohnBoy & others!) - Posted by SusanL.–FL
Posted by SusanL.–FL on August 24, 2001 at 07:57:48:
Top 'o the Morning Everybody!
I had a call on my recorder last night when I got home from work.
It was the mother of Shelby?s former babysitter from TWO years ago! She STILL had my business card!!
She was wondering if I would be interested in buying her home. She just had it appraised because she had wanted to re-fi it. NOW she is getting divorced and has decided that would rather have a smaller house with a pool. It?s a 3/2, C/B, and in a premium school district. The school district alone will sell the place.
She said it appraised at $130,000 but would take $125,000. I remember at the CRE convention hearing that we could offer full price (in exchange for neg. terms) and STILL make money.
First off, I should try to find out ?what she needs? (all cash, etc.)
Aside from that–all that comes to mind is: a subject to (which I?ve never done before) or a 70% loan with her carrying back the second.
Also keep in mind, I am STILL crawling out from under the LAST of my $470,000 debt from that commercial deal gone bad (5 years ago). Suffice it to say: I?M SCARED! But I REALLY NEED to MAKE myself get back out there to (1) overcome my fear and (2) get back my confidence. (I barely slept a wink last night thinking about this.) Suddenly, I feel like I have ?writer?s block?? I need some ideas with concrete numbers.
Can anyone e-mail me their phone number in case I have questions or need guidance this weekend? (My computer is down at home but you can reach me till 4:30 today). ssl1@ntrs.com
Thank you ONE and ALL! I?m meeting her Sat. at 9:00 a.m. Wish me luck!! 
Susan
Re: A LIVE one!! (JohnBoy & others!) - Posted by Tom – IN
Posted by Tom – IN on August 24, 2001 at 12:19:36:
Remember that the top 10% of most appraisals is just air. So this house is probably not worth more than 117K. So 125 is a lot to pay. Subject To just comes screaming out of this deal, with her paying several payments to you.
Re: A LIVE one!! (JohnBoy & others!) - Posted by JohnBoy
Posted by JohnBoy on August 24, 2001 at 08:17:19:
Without knowing what she owes on it, what interest rate her loan is, how many months she has paid on the loan, the taxes & insurance, we can’t give you any numbers. We could only spew off numbers on what you may get from a buyer by seller financing it at such and such rates and getting X amount down. That would only tell us what potential amount you may get up front, but it won’t tell us the cash flow or back end profit without knowing the details on her loan.
The other KEY factor is we need to know what she NEEDS out of this.
Has she already filed for the divorce or talking about it?
Will the husband cooperate and sign off on everything?
If they need the cash out of this NOW, then getting them to go ahead and refinance before getting the divorce would be one solution to getting them their cash. They could refi now and split the cash up and then you can just take over their payments on the new loan! They get the cash they need and the house sold. They also get to split up that cash without having that tied up in the divorce case where their attorneys end up getting some of that by adding on more fees. This would be the smart thing for them to do at this point, assuming they aren’t bitter against one another and out to screw each other out of everything they can.
You need to find out what they NEED and we need the details on the existing financing. Or if they’re willing to refi now and get their cash out and then allowing you to just take over their payments.
Thanx! - Posted by SusanL.–FL
Posted by SusanL.–FL on August 24, 2001 at 08:23:58:
That’ll give me some direction.
(In the meantime, I’ll try to get our computer up and running this weekend in case I have to post again.
Susan