Posted by Lou(TN) on January 12, 2003 at 22:21:45:
Yeah Zack,
I thought about doing that also. Im not real familiar with the sub. to transaction. I have been reading up on it and I think Im gonna give it a try. I just need to have them deed it to a land trust and then assign me the beneficial interests. I was gonna make a provision in the contract that says they get their 25k when I sell the property. I talked with an agent in the same area and he says they are very active right now. I can make at least15k even if I have to pay 6 months of payments and a realtor commision.
thanks for the input. I figured a thousand heads is better than one.
Posted by Lou(TN) on January 10, 2003 at 23:11:54:
Can anyone give me some creative ways to approach this deal.
Sellers mom is sick and had stroke. Were two payments behind but caught one back up. Mother is still living in home. Loan Balance 46000. Tax records show sales of townhomes on same street selling for 95-100k. This is a 2 bed town home.
Another investor approached him and offered $62,000 all cash but seller did not think that was fair.
He told me he would consider $80k to start. I have a feeling that the payments are a problem and the root of the problem. I called a realtor for the area and he told me the average time on the market was 78 days for that type of property.
I figure I would offer to catch up loan. Sign land contract for 70k with payments that mirror theirs($620). Allow her to stay with reduced rent or no rent while I either list it or try to sell it. This would provide them with the short term necessities they need and give them more for their equity.
Why use a land contract? I would have them take a note for the purchase price at the same terms as the land contract, this way you get the deed up front.
Is the 620 payments only? If so, with todays low rates, you could buy and refi the $46,000 at a much lower rate, and then make $ on the spread between old payments and new, and let them buy it back. Or you could buy it and refi the existing balance for purpose of reselling it to aximize price with a long sale period. Just a thought