Posted by js-Indianapolis on June 06, 2004 at 19:47:44:
Sign it up on straight option for 30 days, and market away. Tell him you’ll give him his $2K in 30 days if it sells. If you don’t really know what it’s worth, don’t bind yourself into a bilateral contract.
Possible Subject To / Preforeclosure …OR… NOT? - Posted by Richie (FL)
Posted by Richie (FL) on June 04, 2004 at 22:33:38:
I appreciate the vast amount of information available at this site, and have a question as to whether I should proceed with a deal or not, any feedback positive or negative would greatly be appreciated. I’m a newbie, and I DON’T think that I have a deal, BUT I want to make sure that I’m not throwing away something that might be a productive investment.
O.k…I received a call from one of my bandit signs and it’s an owner who has received a Lis Pendens (he is 4 months behind in payments). He has a mobile home / with land included in a “slightly above war zone” area in South Florida. I went down to the home to check it out. It’s in need of a few thousand in repair and MAJOR garbage removal. The payments are $325.00 a month, with $17,000 remaining on the note. I looked it up at the court house before I visisted the house, and I didn’t find any liens aside from the mortgage.
After repair Value is about $30,000 (I think), I am finding it really difficult to COMP this place since it is a neighborhood with many various styles of mobiles and small houses, and when I try to get an idea using the Property Appraiser’s web site, the prices are so different that there is NO median range. The guy down the street is TRYING to sell his for $60,000 with No Owner Financing (It is in mint condition), but I honestly don’t feel that the area warrants this type of price. Any ideas on figuring out the true value? This is the part of the deal that bothers me the most, without knowing the TRUE value, I can’t determine whether it’s worth it or not.
Anyway, the owner is going to Georgia, and needs “Travelling money” …
He is asking for $2,000 for his equity, and having me take over the remainder of his payments, but after a few minutes of talking with him, he went down to $1,400 for his equity without me really even negotiating with him. I honestly think that even $1,000 would be too much to give him since I’d already be paying $1300 in back payments for a mobile that needs major repairs.
He told me that he was going to sign up papers with another investor for a Subject to + the $2,000 that he wants, but it would have to be placed into escrow until the investor sells the house. The seller told me that this angered him, and he wanted the money in his hand, and didn’t want to wait anywhere from 1 month - 1 year, like the investor had informed him of. So basically, the seller explained that he was willing to negotiate, as long as my intentions were not the same as the other investors.
Basically, is there anything that I can do with this deal?
Thanks so much for your advice
Richie
I would do an option or pass… - Posted by Helper
Posted by Helper on June 07, 2004 at 13:26:56:
Look!! A mobile is just like a car. (They devalue)
He has no equity!! Unless he is talking about the land.
Me personnaly, When I do a subto on a mobile It has to be in good condition. I just get 3-4k down and let the remainder of the loan run it’s course. Because the people who get a mobile generaly don’t have good credit.
That few thousand in repair just might eat at your profits. Just think long and hard to see if this is REALLY what you want. Sure an option might work, but if you get someone to buy it will you have enough profit. You are probibly going to raise the pmt by $100.00 or so.
If you want yo know the Real value of a mobile you will need to get a blue book for mobiles. Which is about $250.00 maybe for a subscription.
I ave not seen the area but if it were me I would pass, but if you want to give it a try go for th option.