Posted by Eric on January 09, 2003 at 13:59:01:
thanks for the information. i need all i can get while i am getting started.
What NOW!!! - Posted by Eric
Posted by Eric on January 09, 2003 at 12:34:13:
I am a new investor and I have been reading a great deal of information but I am swamped (maybe overwhelmed) with everyones advice and knowledge. This is my first deal and I need some help with a specific issue.
I have a recently retired out-of-state client that would like to move a piece of property with a tax value around 75000 that is currently being rented. Can anyone share any insight as to what to do next. He offered to carry a mortgage (he owns outright) and has current tenants. Do I lease-op or subject-to or just buy outright for equitable flip?
thanks for the advice.
Re: What NOW!!! - Posted by js-Streeter
Posted by js-Streeter on January 09, 2003 at 13:23:34:
First, throw the tax value straight out the window. Worse than useless, it’s misleading. Have a Realtor run comps, at the minimum. You should also know the market very well, and know your area well enough to know what the house would sell for.
Then, find someone local, who you can meet with face to face, and have them walk you through this deal.
Re: What NOW!!! - Posted by Marc
Posted by Marc on January 09, 2003 at 12:59:34:
Eric,
First, do you want the current tenant? Do you plan on using this property for a rental? If you don’t, I would have the seller do the dirty work for getting them out. If you want to keep the tenant, do you think the seller is going to seller finance the house for a payment less than what he is getting on rent? Are you going to raise their rent?
The answers to these questions are going to let you see whether you have a true deal or not. If these answers make for a good deal, then there is no reason to do anything else except for seller financing, and getting the deed in your name. Sub2 doesn’t aply here since he owns it outright, and a L/O leaves you open for the owner to change his mind down the road.
Good Luck,
Marc