Help!!! 10 homes for sale. - Posted by Kevin(OK)
Posted by Kevin(OK) on December 08, 1998 at 11:11:41:
A gentleman of 70 years of age called on my “I Buy Houses” ad, and said he has 10 houses he would like to sell. He had talked to his accountant and was concerned over the taxes he would owe, so I mentioned carrying the mortgages (all properties are free and clear). He said he would talk to his wife and get back to me. He did not give me the addresses of the properties, so I looked up the addresses and cruised by the properties (some are better than others, comps from $5,500 up to $51,000 with a total comp. value of $315,791). I called him up and told him I had taken the liberty of driving by the properties, and I am interested in buying the houses. He then asked “if I carry the mortgages, how much can you put down”? I asked “how much cash do you need”? He asked “can you put down $100,000”? I told him I could not put that much down, and I said that the amount I could put down will vary for each property (silently thinking: I might be able to do $500 per property). He then said that maybe he will just keep the houses for his children.
My plan is to send him paperwork showing him how much he and his family will make if he carries the mortgages for 30yrs @ 8.5%. I will also explain what would happen in the unlikely event that I defaulted on the mortgages. Should I mail this to him, or set an appointment to meet in person?
Is there another way of getting this deal done? Also, closing costs on this deal would be a killer. Can we do this deal without a title co.? Is selling a few of the mortgages an option? If I can pull this one off, I will probably be able to quit my job. Please help!!