1st deal !?! - Posted by Dean

Posted by dean on February 22, 2002 at 18:59:28:

thanks all… point taken.


1st deal !?! - Posted by Dean

Posted by Dean on February 19, 2002 at 21:52:04:

Hi, I met a seller in foreclosure who is willing to deed me the property if I assume his debts. debts are: 1st mtg $189k, 2nd mtg $20k, $11k back pymts = $220k total debts.

The property is worth approx $220k. I’m wondering… is there any potential deal here? ie. assume through a corp, sell home for $15k down payment, with an additional $15k as an open loan collateralized by the property? and sell to someone who cannot qualify?

any experienced investors – please respond!



Not NO…but H_LL NO !!!nt - Posted by Kent C

Posted by Kent C on February 21, 2002 at 04:25:42:


Re: 1st deal !?! - Posted by JoeKaiser

Posted by JoeKaiser on February 20, 2002 at 05:33:25:

Doubtful there’s anything here . . .

Whenever I see “2nd mortgage” in a foreclosure situation, I’m interested. I know that the 2nd mortgage holder is going to be wiped out completely and as such, may be interested in a token payment, like $1,000.

Still, even if you can discount it away, there’s little room unless you’ve got a full price, all cash buyer in your pocket.

Had that 2nd been a little more and that first a little less, you might have been able to make some room here for profit.

Poke around and see what’s what, just to be sure.


Re: 1st deal !?! - Posted by Brent_IL

Posted by Brent_IL on February 19, 2002 at 23:25:41:

IMHO, this should not be a first deal.

What about closing costs? What if it takes a while to find a buyer? What if the buyer you do find stops paying on the first and second, as well as your third, and it’s up to you to make the payments? What if that same buyer decides to file bankrupcy and live in your house rent-free for two years?

Thin equity deals are O.K. if you don’t have any money or heavy obligations in the deal.

Is this worth putting your $11,000+ at risk?