Posted by Greg on April 25, 2000 at 12:23:29:
I only use the figure of $100.00 to express a point, and to stimulate create thought, although I would be happier to make a $100.00 than lose a hundred.
truth be known, my experience has been that every deal has the potential for foreclosure.
does anybody see any $$ to be made in this deal? - Posted by peter
Posted by peter on April 24, 2000 at 23:22:45:
i’m pretty sure i can get this sfr deeded over to me and take over pmts (subject to) there’s 71k owed @ 800.00/mo piti (assumable) problem is that the fmv is only 71k. any suggestions or should i just keep on kissing some more frogs?
p.s. my first thought on this would be to lease it with an option to my tenant/buyer and jack up the the sales price to him/her 10k but how does the tenant/buyer get around an appraisal if it comes in @ 71k and i’m asking 81k ??
Re: does anybody see any $$ to be made in this deal? - Posted by Mark (SDCA)
Posted by Mark (SDCA) on April 25, 2000 at 11:48:57:
What will it rent for?? If you could rent it for 100+ per month positive, I would do it. Sell it on a LO. You should be able to get 105% of FMV plus some option consideration…
Cheers,
Mark
Re: does anybody see any $$ to be made in this deal? - Posted by Greg
Posted by Greg on April 25, 2000 at 24:02:50:
why not sell at fmv, factor the rate to make a hundred dollars a month over the present tenent/buyer on a land contract with a balloon in five. If you need the cash sell the paper, if you don’t need the cash, renew the balloon every five years. I would take one of these deals every day for the rest of my life.
Ka-ching
Good luck,
Greg
Re: does anybody see any $$ to be made in this deal? - Posted by Jim IL
Posted by Jim IL on April 24, 2000 at 23:54:04:
peter,
Funny you should ask this today.
I am just now dealing with a property in that very same situation.
I had it L/O’ed to me, and then L/O’ed to a T/B’er.
The problem is now that the T/B’er wants to exercise WAY ealrier than expected, and the appraisal is coming in a bit short.
Also, the lender is only loaning my T/B’er 95% of the purchase price or appraisal whichever is lower.
But, we came up with this, and the lender already has agreed to let it close.
I am going to hold paper on a small second.
This way the buyer gets in now, I get most of my cash out, and still have some control over the situation, plus a small cash flow.
I can also sell the second if I choose for a major discount and get cash from it. (although I plan to just keep it, and HOPE they default, and I’ll get the home back.)
But, try that if ever faced with this.
or,
you can always re-write the agreement for a lower price to match the appraisal.
The only thing the buyer will care about is when they can “own” the house and how much it will cost monthly.
Good luck,
Jim IL
Re: does anybody see any $$ to be made in this deal? - Posted by Neil Roseman
Posted by Neil Roseman on April 25, 2000 at 12:07:59:
Greg, don’t you think there is too much risk in the deal to only make a $100 a month…foreclosure costs…attorney’s fees, etc?
I’m challenging this for my own benefit…I was thinking about doing the same thing, but came to the conclusion I would need a much higher spread than a $100 to make it work? Has your experience been otherwise?