Desparate! Please help! Advice needed! - Posted by Jon

Real Estate Investing
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Posted by Jon on January 13, 2005 at 08:13:57:

You guys are both right about the conflict with my employer. I have spoken with my attorney and she is comfortable with the idea of a simultaneous closing using a purchase option with the seller and retailing to an end buyer. I will farm out the loan to another contact I have in the industry to eliminate the conflict.

Thanks for the suggestions. I’ll let you know how it all turns out!

Jon-NY

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Desparate! Please help! Advice needed! - Posted by Jon

Posted by Jon on January 12, 2005 at 09:03:01:

I’m potentially in a lot of trouble. My wife is about to have extensive back surgery which is really going to hurt my time at work and therefore my income production. I work as a mortgage banker and I do pretty well, but I can see I’m going to have a tough road in the next 3-4 months.

Here’s a plan I have to try to be proactive and build a second income to get my family through this period:

I will find motivated sellers through various marketing methods (b-cards, flyers, newspaper ads, etc…). I will offer to Option to Purchase the seller’s house on a non-exclusive basis at 85-90% of market value. Then I will find buyers for the house through ads, Realtor contacts, etc… who I can get qualified for financing through my company. I plan to assign my option to the buyer for a fee which will be applied to the purchase price, then complete the financing with a non-conventional mortgage at my workplace.

I can complete a purchase transaction in about 4-6 weeks once the buyer is pre-qualified.

Seller wins by selling a problem property.
Buyer wins by getting into the house they want.
I win by collecting the assignment fee and mortgage commission.
Realtor (if included) wins by completing a sale for commission.

Please comment on my plan. I need cash ASAP and I’ll do just about anything to get it!

Thanks for your feedback!

Jon

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Re: Desparate! Please help! Advice needed! - Posted by Warren Priske

Posted by Warren Priske on January 12, 2005 at 22:30:43:

Jon,
Sorry to hear about you wife. I hope all goes well. How much cash do you suppose you’d need to generate per month and for how long?

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Re: Desparate! Please help! Advice needed! - Posted by john

Posted by john on January 12, 2005 at 21:22:05:

buying at 85-90%FMV and retailing where is the profit. A realtor’s commission will put you in negative numbers. I work for a mortgage broker part time I am by law not allowed to do any transaction of which I have any interest. Check your laws. I would find another plan

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Re: Desparate! Please help! Advice needed! - Posted by Natalie Smith

Posted by Natalie Smith on January 12, 2005 at 18:26:36:

My concern is that you will collect both the assignment fee and the mortgage commission. Will your employer allow you to do this? Also, it should be disclosed to all parties. Just my opinion…I don’t know the law in this area.

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Re: Desparate! Please help! Advice needed! - Posted by Jon

Posted by Jon on January 13, 2005 at 07:56:18:

Thanks for the comment Warren.

My bare minimum expenses run about $2500 per month (mortgage, vehicles, 3 kids, etc…). We do not live extravagantly at all, but we do our best to provide for the kids. This whole situation has hit us like a truck, so I have very little time to plan and operate to generate income.

If I can generate $2k per month for just a few months (maybe 3-4 months) to get us through, that would take a lot of pressure off me.

Thanks,

Jon