Posted by Terry (Houston) on September 25, 2002 at 20:15:40:
No way should closing cost $5,000 unless you have some big transfer taxes. The doc’s should not be that much to have done.
Even more important, You are playing a fools game with this one. If “the mortgage owed is about as much as the house is worth” and you are paying $5,000 for the closing and you are paying holding costs, WHERE IS THE PROFIT?
I have made money on houses that the LTV is near market value, but not by paying a ton out of pocket and offering owner finance or a L/O at market value.
You get top dollar for owner finance or L/O. You have to ask for it, you will get it. Try 5-10% above market value.
If you have to hold this house for 3 months, what will that do for your profit margin if you are asking for market value.
Sit down with a calculator and put every possible cost down on paper. See what your profit is. Or is not.
help w/subject 2 deal - Posted by David C
Posted by David C on September 25, 2002 at 18:54:19:
I have a house that the owner is ready to give me title to. I spoke with my attorney about subject 2 and he said there would be excise tax and closing…etc. This would cost me around $5000. My plan - Take propery into land trust with myself as trustee and record it, Make my LLC beneficiary but not record it, and either sell with owner financing until they can refinance and take deed, or get 15-20k down and give them the deed. I would use cya letters on both sides of course. I live in WA and will get the house for 163k. Does this sound like the correct thing to do? Thanks,
Re: help w/subject 2 deal - Posted by Bill - FL
Posted by Bill - FL on September 25, 2002 at 19:17:17:
Ask your attorney if it goes into a trust without a purchase price involved, how is it gonna cost 5K? What is the 5K based on? Go one step further and have the beneficiary, who should be the previous owner, assign your LLC the beneficial interest. Three docs involved. THe deed, the trust and the assignment. Use the name of the previous owner in the name of the trust. You can record both the deed and the trust not the assignment. I would sell with new financing only, or if not possible, thru a lease option. Is it that hard to find qualified buyers in your area? Work with a good mtg broker and cash out.
Re: help w/subject 2 deal - Posted by david c
Posted by david c on September 25, 2002 at 19:35:41:
Thanks for the reply bill. The reason for owner finance is to attract buyers, because the mortgage owed is about as much as the house is worth. afraid i wouldn’t get any interest if i went too much above market value.