Posted by James_NC on November 22, 2001 at 21:41:04:
Chris,
the word of “dear” means higher value, another word,
“Buy cheep, sell High”. I hope this helps.
Is there a deal here? - Posted by Chris - Fl
Posted by Chris - Fl on November 21, 2001 at 18:12:06:
I got a call from someone today that has lost his job. He has a house that has 15 year financing on it and his payment is high. He has it rented at $1,200 a month yet his mortgage payment is $1,550. The home is worth around 140K. He has a tenant in the property currently with a lease that runs out in June of 2002. This person is motivated but I can’t think of a way to make this work with his 15 year mortgage and the high payment due on it. Any ideas? Anything would be truly appreciated.
Regards,
Chris
p.s. Although not creative I closed on the first of 2 properties today and will be done with my 1031 Exchange by Nov. 28th!
Re: Is there a deal here? - Posted by Ronald * Starr(NoCA)
Posted by Ronald * Starr(NoCA) on November 21, 2001 at 20:04:38:
Chris–FL--------------
Thanks for the information that you gave. However, You did not mention the market value. If it is worth substantially more than the loan amount, you could try to buy cheap and then resale dear. Or, if you prefer, buy cheap, refinance on better terms, and then keep on renting it out.
Good InvestingRon Starr
Re: Is there a deal here? - Posted by Chris - Fl
Posted by Chris - Fl on November 22, 2001 at 08:18:20:
Ron,
Thanks for the response. He has about 15k in equity. The mortg balance is around 126k and comps are in the 140k - 145k range. Thanks again.
By the way… did you call me “dear”?
Chris - Fl
Re: Is there a deal here? - Posted by Ronald * Starr(NoCA)
Posted by Ronald * Starr(NoCA) on November 23, 2001 at 19:58:09:
Chris–FL-----------
Well, that is a little close, but, if it is in decent condition and the real estate market is pretty good, you could probably make a little profit. That is if you can buy it for only $1K or $2K over the loan balance and then resell it yourself, without a real estate broker involved. However, there is not a lot of “juice” here to be squeezed out of the property.
Oh-oh, I just reread your original post. With the renter in the property, I would suggest a pass on this one. If you can get the renter to agree to move out right away (beginning to mid Jan, 2002) without having to pay anything, and you could get the seller to just deed the property without your paying anything, then you might want to take a chance on it. However, If you are not to experienced, you probably should pass.
Good InvestingRon Starr******