Help also with first deal! - Posted by Paul, MO

Posted by DB_Atl on November 05, 1999 at 16:26:57:

I agree with Robjan, there is just not enough room here for comfort. Unless you have cash to lose in the event of the unexpected.

Help also with first deal! - Posted by Paul, MO

Posted by Paul, MO on November 04, 1999 at 22:01:35:

Just want to start by saying thanks to everyone who posts here. I have learned alot. Any suggestions about how to structure this deal would be appreciated.
I am going in a couple of days to make an offer for a pretty beat up Condo. I would like to purchase condo on either a lease/option with 3 months before 1st pymt is due or some type of owner financing with possibly a 6 month balloon pymt. ARV is $67-70,000, it needs about $4-6000 in repairs. Talking to the owner she owes about $50,000 with a lien for about $5000 with the condo assoc. (Don’t know mortage bal. and lien amount for sure.) Based on my numbers I’m looking to make over $10,000 profit and already have contractors set to go. Condo is in a great location and she is motivated to rid herself of the situation, and should be able to sell quickly after repairs. Already checked Assoc. and doesn’t appear to have any restrictions on this. They want her out of there just as bad as she wants to leave due to vacancy for the past 6-months. I’m going to start bidding at $45,000 and see what happens, but my question is what would be the best way to structure the deal. We have already discussed L/O and I think she would go for about anything. My other prob. is if we did decide on a figure how can I be sure she will provide clear title when I purchase and simultaneous close. What precautions should I make? anything would help. Thanks again everyone.

Re: Help also with first deal! - Posted by Robjan

Posted by Robjan on November 05, 1999 at 14:49:58:

Don’t think you have a deal here. She owes $50,000 plus $5000 in a lein plus it will cost you another $6000 for fix up.That puts you at $61000 and with arv at $67000 not a whole lot of cushion for the unexpected. Also why would she accept $45,000 when she owes $55,000. Don’t think this one is a lease option canidate.