Posted by Nate(DC) on July 11, 2001 at 13:14:10:
In my area, for a house that sells for $85K you would have to wait a very long time to find someone with $10K saved up as option money. You would probably not even be able to get $5K. Maybe $2K-3K. But that’s my area. Maybe yours is different. Have you done L/O before in your area? If so, how much did you get up front? How long did it take you to find people with that amount of $$?
NT
Deal?..possible…my take on structuring this - Posted by Redd(CT)
Posted by Redd(CT) on July 11, 2001 at 12:00:48:
I had a call from a seller 2 days ago. He needs to move by the end of the month.
Stats:
subject: HUD house 1/2 duplex…2bdrm 1 full bath. bought last year…he totally rehabbed it.
Appraised at 78K
wants: 75K
condition: very good
PITI: $604.00
rents in the area: 800-850
the seller prefers cash but said he would be open to terms. I asked him how much would he need down if we negotiated terms…does not know but said we can talk about it. I would like to offer a couple of options b/f I drive out to look at it.
what I want to do:
#1. create income or
#2. sell wholesale for lump sum profit but prefer income
Offer #1:
all cash for 50.5K
exit: hard money or use my private investors
offer #2:
offer to take the house subject to (even though I have not done a 'subject to deal’b/f) for 70K maybe give him 5K to walk.
exit: owner finance for 85K for 10K down & 850 per month
offer #3
Lease option the house from seller for 74K give him 3-5K to walk (only b/c he will want something to walk)
exit: LO to a T/B for 85K, payment 850 & 5K deposit.
I have dealt w/ flips in the past so I am slowly getting my feet wet w/ other creative deals…
I tried my best in making ‘creative offers’ w/ this particular one
So please pick at my offers & tell me what you think…
thanx in advance!
Re: Deal?..possible…my take on … - Posted by Ronald * Starr
Posted by Ronald * Starr on July 12, 2001 at 11:50:20:
Redd(CT)-----
You don’t tell the loan amount. Usually people will not sell for less than that. Otherwise, they have to come out of pocket with cash. If your cash offer is over the amount owed, that might be good.
You other offer–do you know you can get $85K for it? Why pay so much for it? Real close to market value. If you can get it for a little less, it makes it possible to sell for a little less than $85K, giving you some leeway in case that is too optomistic.
Good InvestingRon Starr******