Posted by greg on March 04, 2006 at 10:00:41:
What are your objectives, what are you trying to do Long term,and Short Term, Have you completed a finnacial anaylysis, ( If your situation) If you have cash flow to handle holding costs/carrying costs till you flip, then I would go that route, but make sure this scenario fits with your objectives, and you have the finances to carry the property until it is sold and flipped…
How would you approach this deal? - Posted by Carl P
Posted by Carl P on March 03, 2006 at 13:26:05:
SFH 1150 sf, 2bd/ba, built 1950 balance owed 190K, including att fees & back payments lender wants 210K. They will not discount. Auction date 03/14, seller said it needs carpet, paint, and yardwork. Assuming this is true (I am going to look this afternoon) CMA indicates FMV @ 255K in nice shape. It looks like SS is not an option, due to the lender. How would you structure this deal? I am still a noob in this area, learning daily. She has a bad mortgage @ $1450/mo.
I could get a new loan and cash out as much as possible,
(middle FICO 720) fix & sell. Another option, bring her current and get the deed? If I did this what is my best exit strategy, sell and cashout or L/O the property somehow? How can I protect myself in this senario? It would be nice to get it from her, do the repairs and flip for cash without getting a new loan on my credit. I have access to HML for the project.
Thanks!
Carl
Re: How would you approach this deal? - Posted by Carl P
Posted by Carl P on March 03, 2006 at 19:13:51:
I just got back from viewing the property. The home is in decent shape, it needs paint, yardwork, and the hardwood floors need a little attention. It was better than I thought. I went through the owners file and as of 01/10 she owed 202K. The bank is willing to do SS, but the previous investor offered 135K. The bank sent a letter saying it was too low, and the inv told her the bank won’t do them. I got her to sign a POA and called the bank. All I have to do is fax a few things over and they will give me an answer or counter mon. We’ll see how it goes. Still looking for opinions! I will offer them 157K at first.