Advice For Sale of Unfinished Rehab - Posted by Bob-Tx

Posted by Zane on March 07, 2001 at 17:25:03:


I’m an investor in Ft. Worth. Where’s the house? If it’s close enough to me I may be interested.


Advice For Sale of Unfinished Rehab - Posted by Bob-Tx

Posted by Bob-Tx on March 07, 2001 at 09:30:29:

I have a little house that we have just been unable to complete rehab on…too many houses, too little time, too little cash. I’ve now been approached by a buyer who wants to buy it, seller financed, and complete the rehab for his own residence. The property needs another $6k in rehab…here are some numbers:
ARV - $56k
Current position - $32k invested
Current monthly interest pmt - $418
Current offer to buy @ $39k

The temptation is to sell it owner financed with $2k down at 15% - monthly pmt of $468 p&i, season the note for 6 months then sell it off showing work performed by buyer combined with the $2k as down payment.
My existing hard money loan has another 6 months on it.

Am I delusional here or is there a way to structure this deal so I’m out of it with a bit of cash and can get out of my interim loan in time? I know, I know - why not finish it out then market it like we do everything else. Well, this property has been one of those problems that keeps lurking and we continue to put off the completion for an assortment of reasons…one of which is money.

Tell me why the above scenario is bad or good…please.