Posted by michael on February 06, 2002 at 19:32:12:
You only need to know one thing before you decide to do a deal…will the numbers work, that’s it.
It is pretty skinny deal and would be hard to make anything from and assignment with all the back payments owed. I personally wouldn’t carry a property I couldn’t get as least $100 a month profit from. So, if all else fails, I would offer the owner and option and try to sell it retail.
In the end it just depends on what you want to do and deciding if the numbers work. I hope some of these idea’s will help!
Posted by CurtNY on February 07, 2002 at 12:36:54:
Just another view (if the numbers work), I think it was Jon who said get an option and sell retail, I would add a little twist, sell with owner financing, get the 2nd & 3rd to discount (as much as possible), sell for full price, get at least 10% (with your numbers $16,000) down. Owner finance the remainder and sell the note at the table. Check out www.sunvestinc.com for more info on the subject. Just make sure that after the discount on the note and the down payment you have enough to payoff all outstanding liens and make a nice penny. Good luck.
Re: Too skinny? What would you do? - Posted by Todd B (Va)
Posted by Todd B (Va) on February 07, 2002 at 11:33:35:
Offer 10k for the 2nd, and 2k for the 3rd. If you get them at that price then catch up the 1st. At this point you are out about 15k. Your equity is about 160k - 127k = 33k. Sell the house on a land contract for 160k, with a 15k(or more if you can get it) down payment. You could have a positive cashflow of a few hundred per month, and a back end payoff of 33k plus.
Another thing that you can try to do is negotiate with the 2nd and 3rd mortgage holder since the mortgage is behind and see if they would discount the notes to avoid them being wiped out due to foreclosure. Then you would have more room for profit. It doesn’t hurt to ask.