Posted by Ronald * Starr on September 14, 2001 at 15:38:30:
Brandon Treat----------
I like that you are concerned about the ethics of what you will do. And that you would mow the lawn and put up a new sign. I also think Dew CO gave you good advice.
Now this is a property which can be called “adbandoned.” There are good profits to be made if the expenses are not too great. You might not have to pay much cash to the owner. In fact, you might be able to afford to pay for it and hold it, even with the obligations on it, until you can get a buyer to take you out. You might offer $200 cash and take on the responsibilities of some of the obligations against the property. But know what those are before you make your offer.
Now, since you have had several people through the property, do you know the current market value for those type of buyers? If not, you should call them up and ask them what price would be attractive to them.
You need to know what is owed on/tied to the property. The Best Buy obligation could be on the property if: they got a judgment against the owner and the owner took title to the property in his name.
However, it might be possible to get a “release” of that judgment from that specific property for some fee less than what is owed. The judgment remains against the owner, so they could try to collect other money from him. Or, it might be possible to pay off that judgment in full for less than the face value. That could be the “payoff” to the owner – elimination of that debt.
Get your math down: value of property. What is owed against it. What of that would have to be paid off when you buy/flip the property? Is there a profit? How much? Do you want to do the work for that?
If you have trouble with this, you can call me if you want. After 7pm pacific time or weekends is best: 510 + 534 - 6472.
Good Investing and Good Investigating**********Ron Starr**************