Need help with this potential deal - Posted by Kris

import · June 17, 2001, 9:33pm

Posted by Kris on June 19, 2001 at 03:49:25:

Thanks I’ll try this as an alternative offer if he backs out of one I’m going to offer him. I’ll let you know the results. Ido like your idea on this though. I’ll try it out on other property I want to buy.

import · June 17, 2001, 9:33pm

Posted by Kris on June 17, 2001 at 21:33:35:

I’m in the L.A. area and I’ve come across a property in the lancaster area. Its owned free anc clear, says the owner. He’s asking 95k for it but said he’s willing to negotiate, its a 3bd/2b 1235sqft. built in 88. Kept in great condition. couple (owner/wife) living there have no children so the place has been kept up to near excellent cond. Says he would like cash but may be willing to take back a mortgage. I’ve done the comps but cant really find any in his area with similar sqftage and the prices of the comps in his area are all over the place. It seems to me that the homes that were recently sold in the area, at prices similar or, in some cases, more than what the owner is asking for, seem to be even larger in sqft, from 200 to as much as 600 sqft larger.

Can anyone out there give me some insite as to what i should do? The two options I was thinking about was trying to buy it with no money down then try to flip it for a few grand more and come out with some needed funds, or buy it and try to rent it to either a renter or do a rent to own deal.

Any suggestions or is this a dead deal? Any experienced that can shed some light on this one for me? I’d greatly appreciate it. Thanks a bunch

import · June 18, 2001, 3:40am

Re: Can someone help me with this potential deal - Posted by Kris

Posted by Kris on June 18, 2001 at 03:40:57:

I had posted the original message. I need someone that can help me with the deal I originally posted. If any experienced investors are out there, I sure can use the help. I want to structure a No money down deal with it if I can. Please Please Please reply to me message asap. Thanks

import · June 19, 2001, 1:56am

Re: Can someone help me with this potential deal - Posted by Big Rob

Posted by Big Rob on June 19, 2001 at 01:56:04:

Hello Kris!
There is a no money down deal here! If he wants all cash, but would consider taking back a mortgage. I have a scenario that just might work. It will depend on the motivation of the seller. Have the seller refinance the property and get all his cash out. Then buy it on a wraparound land contract for no money down, take over payments. You get the property, no money down, he gets the cash he wants, then you sell it on a lease option for 4-5K down. I love these type of deals because not only can I get it no money down, I get cash in my pocket when I sell it L/O to a tenant buyer, and best of all, I am not on the loan! Make sure he doesnt over encumber the property by getting a more than 100% loan! I would tell the seller that if he gets a loan for more than 90% of the value, I wont buy it. make sure he can get a competitive rate. You dont want to take over a helacious payment that you cannot get from a new buyer.

Remember, the most important thing is to find out what the need for the sale is and try your best to solve the sellers problem.

Hope this helps.