Posted by Bill Ward on October 16, 2001 at 16:34:13:
Check out this article:http://www.creonline.com/articl13.htm
Simple Option (Please Help Sell !!) - Posted by Chad
Posted by Chad on October 16, 2001 at 11:42:56:
Hello,
I have an Option on a home to buy for $185,000. The house is in very good shape and appraises for $215,000. My objective is to run a desperate seller advertisement in the local paper that reads:
Priced $20K+
Below Fair Market
Chadwick Area, 3/2.5
2000+ Sq.Ft, w/ 2-car gar
MUST SELL
$194,900
I have done just that. However, the only calls I have gotten have been from Realtors and Brokers.
What other options do I have? The seller needs the cash now for an aging in-law. Therefore, she would only go for an open option.
Another investor had mentioned that I might try to try seller financing and then sell the note. I understand this idea but do not know if it is feasible on this property. For instance, Say I bring the price up to appraisal and find a buyer offering seller financing? How does the note have to be structured to be profitable (to me) and marketable to a note buyer. What LTV do note buyers look for and what purchase % are they willing to pay on an unseasoned note. The other investor mentioned getting $5000.00 down and selling the $210,000 note for 90-95% of value. But I would think that note buyers would not buy a note with any less then 90% Loan-to-Value. Could somebody please help get an idea of what parameters I should keep in mind when trying to structure a note for sale? Thank you for your help.