Re: What does the contract say? - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on July 11, 2001 at 21:07:33:
You have given us no information that could possibly result in any of us being able to give you an answer.
None of us can tell what the question is, and quite frankly I get the idea that you are not sure either.
Now if you do not understand, it is not time to get into a contract situation yet.
You say that the seller is “carrying” a mortgage, when your explanation indicates that the mortgage company is “carrying” the mortgage and the seller is obligated to pay it…BIG DIFFERENCE.
You indicate that you have a “subject to” clause in your contract, and then you indicate that you do not understand what that means. THIS IS A PROBLEM.
If you buy from the seller as you have indicated here you are talking about $15,000 cash to the seller, subject to the existing loan of about $32,000. for a total price of about $47,000 You will be the one to get to make the payments after the closing.
Now you are willing to “flip” this deal to an investor who is going to give you $15,000 cash and whatever added amount that represents a profit for the house. The new investor will have to then start making the payments on the underlying loan of about $32,000, and do the $5,000 in repairs. Then the investor who now has over $20,000 in cash, plus whatever profit that he gave you, and has been making payments all along; will be ready to find a buyer for this property.
Retail for this property is going to have to be up around $60,000 for it to even begin to work. Can that be done? Did you understand that was what was needed? If not keep reading, and keep your cash in your pocket.