3 "option" contracts in one day....need help! - Posted by Steve(NC)

Posted by Ben in Ohio on April 30, 2000 at 10:28:06:

You buy notes with no seasoning? Tell me about your programs.

3 “option” contracts in one day…need help! - Posted by Steve(NC)

Posted by Steve(NC) on April 28, 2000 at 20:27:10:

Ok…like the saying goes you can make money if you dont make
offers. Well, I am on the prowl for l/0 deals but stumbled onto to these others. They are all 3 options to buy…below market value. I am hoping i can retail them due to the “hot” buyers market that is going on here right now. Just need some ideas as to possible other options with them and possible ads to run.
Here they are:

  1. House 3br/1.5 ba great starter home in a decent area that has been rehabed.
    FMV $70k My option: $60k
  2. Condo 3br/2.5 ba gem in nice area of town.
    FMV $93k My Option: $85k
  3. Condo 4br/3.5ba 2900 sf huge condo in wealthy area
    FMV $180k My Option: $168k

My plan is to call a few buy and hold people i know that deal with homes and condos and try sell contract to #1 for a few $$. I will also try to just sell them outright if possible due to the hot market.
Any ideas as to ads…?? These are 3 very different pieces of real estate. Any help appreciated.

Thanks,
Steve (NC)
“Put your nose to the grindstone”

Re: 3 “option” contracts in one day…need help! - Posted by Monique

Posted by Monique on April 29, 2000 at 24:51:33:

James offers a great suggestion about selling fast with owner financing. You’ll get lots of interested buyers calling you. Though, with the option prices that you have, you’ll see a much skinnier profit if you sell each of the notes.

For a 6% note buyer’s discount, your profit looks like this:

  1. FMV $70k My option: $60k --> Profit would be $5.8K
  2. FMV $93k My Option: $85k --> Profit would be $2.42K
  3. FMV $180k My Option: $168k --> Profit would be $1.2K

Is your seller marketing the home while you have the option? You might marketing your ad with seller financing and see if you can attract buyers with “on-the-fence” credit. They may not realize that they can get a new loan. But if you’re working with an aggressive mortgage lender, you might be able to help them get into one of the more creative loan programs – when they thought they could not. And, not have to give up the profit when discounting the note.

We’re looking at the same situation where we have a really skinny margin left if we sell the note.

Monique

Re: 3 “option” contracts in one day…need help! - Posted by James Harris

Posted by James Harris on April 28, 2000 at 22:25:50:

Add owner financing to your deals. Sell the properties for full appraised value. 10% down create a note and sell for cash. I will purchase these notes from you. If interested email me