Can you all look at this deal? Please help if you can! - Posted by JB in MD

import · July 30, 2000, 10:20pm

Posted by PBoone on July 30, 2000 at 22:41:33:

Let it go to the bank, bad deal, no equity or cash flow
There are millions of these bad deals out there with the numbers increasing run fast.
Pat

import · July 30, 2000, 10:20pm

Posted by JB in MD on July 30, 2000 at 22:20:50:

Hi all,

TomC has already given me some good advice with this deal. Now I am just trying to decide whether or not to make this my first deal. Let me lay out the details.

SFR, Condo and TH development area
4-5/2.5 3 floors no garage, no FP
Owner purchased 1/24/00
Purchase price $121,200
1st trust balance: $118,253
2nd trust balance: $5,000 (less by now, not sure of total)
2nd trust was used to cover down pmt
Owners (2 sisters) made first four pmts.
In arrears on four payments, total including August is $3800
Very motivated, their RE lawyer told them to do my deal.
Needs, at most, $1000 in minor repairs, gas range, painting, mouldings etc.
Owner converted dining room into 5th bedroom (good selling point?)
House is all gas, 1 y/o hot water heater, few year old furnace, old as the hills condensing unit but is working.
Total pmt per month is $1160. Includes condo assoc fees, water, 1st and 2nd trusts.
Pre foreclosure paperwork will be started by the bank (Chase) on 8/16.
Owners can’t be out before 8/11.
Comps are difficult to get, because many sales in the area have been condos. High sale per OCTitle is $119.5k.

This is about all the info I have. Obviously I want to do a subject to deal. How would you do this if it were your deal to take or refuse? I have to call the owner back mid afternoon tomorrow - Monday, to tell her if I think I can do it or not.

Can I have a clause that states the deal is subject to my finding a qualified buyer?

Is this deal too skinny? I think it may be on the front end simply because if I only get 5% for down pmt of option consideration. But if I can get at least $100 spread and several thousand on the back end, I would consider that a great achievement for my first deal.

Once the paperwork is started on 8/16, usually how much time will I have to bring the loan current?

PLEASE HELP! ASAP!

Thanks in advance!

Jason

import · July 31, 2000, 6:49am

Thanks Pat and Rick… - Posted by JB in MD

Posted by JB in MD on July 31, 2000 at 06:49:30:

I was hoping that this one would work out…Oh well on to the next one I guess. This was my first opportunity at a subject to deal, so I wanted to try to make it work, not necessarily make a killing, but something. I really though that owner financing would bring me a buyer that would pay maybe 10% premium for the place. I guess not, based on both of your responses. Thanks for the advice, I will cut this turkey loose!

Jason

import · July 31, 2000, 4:31am

I agree … - Posted by Rick Wheat

Posted by Rick Wheat on July 31, 2000 at 04:31:08:

the numbers don’t seem to work. You are looking to get into this property for:

$118,250 - 1st Mortgage

+/-$5,000 - 2nd Mortgage

$3,800 - Arrearage

$1,000 - Repairs

$??? - Closing Costs

Total Purchase Price - Nearly $130,000 on a property you have found with the highest comp price of !119,000??? Where’s the deal?

Chase Bank (and the Mortgage Broker who originated the deal) deserve to own this one for letting these two babes get into this one. Run, RUN!!!

GOOD LUCK!!!

Rick Wheat