Posted by Nathan(oh) on July 29, 2001 at 11:31:59:
Thanks JohnBoy, I was hoping you would respond. I agree with you and have arranged to sell my contract for about 1250. At least a made money to learn a lesson this time!
getting rid of LO help - Posted by Nathan(oh)
Posted by Nathan(oh) on July 28, 2001 at 17:02:36:
I have a property that I have to make a payment on in August for $956. I have had it for a while and have had a lot of interest but no luck. Actually, a young lady was going to put down 5k last night but her mom talked her out of it in front of me. Talk about a heartbreaker. Anyway, it is an expensive house in a nice area that borders poor areas. People are not showing up for open houses and ducking from my calls. Ads did no good, but sign pulls about 30 calls a week. Here are my terms, 129,000 price @956/month. Taxes 2331 a year, split dp with landlord and have to take minimum of 3% down. The house is appraised for 137500 last year, and I am only asking that. I have an offer to make 1000 and have someone make my payment this coming month. I would just be assigning my contract. I have bills due and need the money, but 1k is not much for this, however this house is becoming a problem. Should I take the 1k and walk or make the payment and hope for an offer. I am thinking I will take the buyout because if I make the payment and someone gives me 4k next month. I will be left with half and then subtracting 956 which is about even. However, when they cash out I will make another 5-6k. Please help!
Thanks
Nathan
Re: getting rid of LO help - Posted by JohnBoy
Posted by JohnBoy on July 28, 2001 at 22:17:42:
It sounds to me like your best bet would be to take the $1k and run! Just make sure you get a signed release of liability from the seller releasing YOU from any future liability in case the person you’re assigning to ever defaults. If that happened the seller could hold you responsible for the lease.
To stay in the middle just to make $5k - $6k on the back end IF your buyer cashes you out is not worth the risk involved.
$5k - $6k up front, $200+ per month, and $10k+ on the back end is more in line to justify the risk.
That $5k - $6k back end could be eaten up quick if your buyer ends up moving out and you had to go in spend money getting the property cleaned up in order to find another tenant/buyer.
Having a smaller back end is OK if you can get a larger fron end or make it up with a larger cash flow or a combination of everything. But making only $1k up front, minimal cash flow with only a “potential” back end of $5k - $6k is a lot of risk to carry for a little pay day.