Posted by Dennis on June 08, 1999 at 07:35:49:
I get the impression that she wants to get rid of the management headaches of this property, although as I’ve learned, her price does not reflect it.
I’ve taken a reasonable comp of $135 and have structured three offers ala Ron LeGrand.
1.) $87,750 all cash
2.) $1K down, 101,250 in 6 months
3.) $115,250 purchase price with 10K down and owner carry of $105,250 at $625 a month until paid. Mortgage to be subordinate to new financing.
Since there is but 5K on a first, I figure I can get a new loan for around 20, pay her 10, use 3 for fix-up and still keep 7K. Notes total 105,250 and and 20 for 125,250 total. House is worth 135K fixed.
But what happpens with the 5K first. It’s probably a fully assumeable balance of a note from a long time ago. Does she pay off the 5K balance with the $10K down payment? Or, do I buy on a wrap-around or all-inclusive trust deed if there is no due-on-sale and with a land contract if there is a DOS? I guess in either of these cases the owner carry is $100,250K.
Buy and selling on a land contract… - Posted by Dennis Aguilar
Posted by Dennis Aguilar on June 07, 1999 at 15:10:54:
I know of a house where the occupant passed away and his sister who owns the house is looking to sell it. It is a residential house that is zoned commercial and comps come in at 145K and 130K. She is asking 148K. She is not open to a lease option but said she would be willing to do owner financing with a substantial deposit. Being a doctor and owning about 7 other pieces of property she did not seem to need the money but was more interested in getting rid of the management of the property. I suggested buying the house where she retains title until a seasoning of payments had occurred. She liked this idea.
I was looking for a way to flip this house. I was thinking maybe give her the price but do it on my terms. Could I buy the house on a land contract and sell it on a land contract? Or would I have to assign it if I bought it on a land contract?
Any other purchase considerations appreciated.
Thanks,
Dennis
Re: Buy and selling on a land contract… - Posted by Redline
Posted by Redline on June 07, 1999 at 15:27:16:
Where’s the deal here? She’s asking market value (and possibly more). Where’s her motivation?
RL