Posted by Aaron on March 09, 2002 at 15:28:39:
Thanks Michael, I appreciate the input!!
Aaron
Advice on possible 1st deal!! - Posted by Aaron
Posted by Aaron on March 09, 2002 at 14:17:28:
Hello Everyone-
My name is Aaron Ferrufino and I’m a newbie. I’ve been reading posts on this site for about 2 and 1/2 months now and have asked questions before and you guys have never let me down, thanks!
Could you all give me your opinion on this, my possible 1st deal?
A lady called me up and left a message on my voicemail saying she wants to sell. Here are the facts:
Original loan and type: $73,900 FHA(possibly FHA she says)
Refied at: $71k
Interest rate: 8.5%
Balance: $69,600.00
Monthly payments including everything (taxes, insurance): $628.00 plus $25 home owners association fees. (It’s a townhome)
She explained to me that prices have been going down in her area. She just wants to break even. If someone offered her something today, she said, she’d move out tomorrow. She’s owned it for 7 years and has kids and a husband.
Dishwasher doesn’t work. No major repairs needed. Half finished basemant. 3bedrooms and 1.5 baths. No garage. Has a deck. She wants to be out, the latest, by June of 2002.
What are your recommendations and thoughts? Thank you to everyone, God Bless!
Aaron Ferrufino
Re: Advice on possible 1st deal!! - Posted by Michael
Posted by Michael on March 09, 2002 at 14:43:26:
Aaron,
I would get with a RE agent who can run some comp’s for you and have them tell you if home prices in the area really have been dropping over the years(don’t take the sellers word for it).
If it’s true that prices have been dropping over the years then find out why. Is it something that won’t be changed over time or is it just a downward trend. Either way this would be a deal where you buy and hold. I would get it as a subject to and create a mortgage by selling on a land contract with lets say a 5 year ballon. That should give the area enough time to rebound if it is in a downward trend. Although if the area has been losing value for quite some time I would probably have to pass on the deal, especially if the amount owed on the place is close to FMV right now.
Just my opinion!
Michael, KY.