Need help on deal - Posted by Mike C

Posted by FXRocket on November 06, 2003 at 22:01:34:

Assume a loan? Not many loans work that way do they? Will it trigger a “Due on sell”?

Need help on deal - Posted by Mike C

Posted by Mike C on November 06, 2003 at 14:26:50:

Call a couple on a Nice 3 br 2 bath house with ARV of 85,000. Carpet will need replacing (1700 square footage) Couple purchased a new house back in April (new baby) and has rented this house since May. Couple has a 70,000 mortage and a 15,000 home improvement loan. Total monthly payments on loans are 920. They have been renting this house for 840 a month for a negative cash flow of 80.00.

I told them I would get back with them…is their any deals in this one and if so what offers shoud I make?

Re: Need help on deal - Posted by David G.

Posted by David G. on November 06, 2003 at 18:39:34:

It appears that there is no equity here. Appraisal is 85K and total amount due is 85K combing 2 loans.

However, this deal is STILL doable. HOW!

Offer to take over the loan (subject 2). Have them make the next 2 payments. Meantime you get a buyer.

Sell home for 93K, ask for 8K down and have your buyer take over the loan. Since you are offering owner financing, buyers will pay a little more than appraisal value. Also appreciation plays a factor here.

You keep 8K, buyers get a NON qualifying home, and sellers get a home off their backs that was bringing negative cash flow.

Before you make this offer, FIND OUT if they are behind in payments.

David G.

Re: Need help on deal - Posted by LS

Posted by LS on November 06, 2003 at 15:21:14:

This deal looks pretty thin from my limited point of view.


Good Luck