Posted by Bill Jacobsen on December 19, 2008 at 12:04:27:
I think this is really a candidate for a short-sell. Why was an appraisal done? refinance, etc. I believe you can get a lower appraisal by inspecting the house and developing a bid for all needed repairs. Also, put it on MLS at a price that would pay full closing costs and commission. That will show the bank that it won’t sell.
Of course, if the seller would rather do a contract that is OK also. You could consider taking your commission in a note. I don’t see the need for a property manager after a home has sold, even on contract.
I get alot of calls every month on houses like this. Most of them don’t really have enough equity for me to take over and take the risk. I am also a Realtor.
Most of these deals I just throw away but I have been wondering If I could make money from these deals someway.
Here is an example:
Appraised at - $180,000
Owe - $175,000
PITI PMT - $1392
I have thought about listing a home like this on the MLS for $185,000 as Seller Will Finance and have a buyer put down at least 3%. I would then take that 3% as my fee for selling the house on a land contract with a 3 year balloon.
After the deal is setup I would then act as a property manager until the deal is complete.
One thing I was thinking about is that as a Realtor or property manager I don’t have to worry about making house payments on a vacant house or have to worry about any repairs.