Posted by LeonNC on February 17, 2001 at 24:43:29:
Just off the top of my head I’m wondering if you can lease it for more than your payment? And, I would not make the payments until I had someone in the house making the payments to me. Just my .02 worth.
LeonNC
Help, I got the property Now i’m Worried. - Posted by Big Mike H
Posted by Big Mike H on February 16, 2001 at 23:25:42:
I’ve been working with these great sellers. I wanted to buy the home they just moved out of using a lease option but they would rather I buy it from them. I suppose an All Inclusive Trust Deed would be great, but I am worried about getting stuck with a property I can’t dump. The appraised value is 195,000.00 they will sell it to me with terms @ 180,000.00. The payment is around 1400 @ mo. (7.5% Fixed Rate @172,000.00)The home is a little dated but in average condition for a 21 year old home. Its in a great upscale neighborhood.I am kind of scared to jump into this deal. I know I could more than likely sell it to someone else on a Lease Option. I just don’t want to put these people in a bad situation if I can’t do anything with the home. These folks are selling me this home because they can’t pay on two houses. They are depending on me to help them.
I need some seasoned advice,
Mike H.
Re: Help, I got the property Now i’m Worried. - Posted by Mark-NC
Posted by Mark-NC on February 17, 2001 at 07:39:11:
Mike,
The first thing I would do is be up front with them and tell them your concerns. Tell them that after looking at the whole situation it is a liitle too risky for you to take on if you bought it.The numbers are too tight and because the home is slightly dated It may take a special buyer to take this home in this price range. Tell them you would love to help them out but you also would not want to cause any problem down the road for them or you should you have trouble moving the house.
Tell them what you could do for them is put an option on it for 60 to 90 days and that as an investor you have many creative ways to sell a home and you are constantly dealing with buyers that may want a home like this. You could also include that you will creativly market it heavily during the time of your option.
If they won’t go for the option try suggesting an open option. If this dosen’t work and you feel this uncomfortable about doing this deal you need to let it go. It would be great to be the hero and help them out but you need to be carful. They have a problem, not you. But if you are the nice guy and buy it, the problem becomes yours if you can’t do anything with it.
If are really considering buying it, I would run a test ad to see what king of buyers it may draw before you made the commitment to buy it.
Good luck!
Mark
Re: Help, I got the property Now i’m Worried. - Posted by Terry (Houston)
Posted by Terry (Houston) on February 17, 2001 at 03:47:06:
This is not a house you would want to buy straignt out to flip.
Can you take the property over subject to the existing loan?
When are you supposed to give them the $8000? And why? Giving the $8,000 does not leave you with a lot of room at all for a house in that price range. Your closing costs, holding costs etc. can eat that up in no time.
Is the $1,400 something you can cover in monthly rents there to do the other end of the lease?
You should make the contract contingent on your first payment being made when you find a tennant buyer.
I talked to a lady the other day who was willing to make some of the payments on her house to get rid of it but could not do enough with it and her 13% int. rate to make me do it. Might be something to consider.
Terry