Posted by Jay - MI on August 01, 2003 at 08:33:33:
That was better than the Top 10 on Lettermen last night
Posted by Jay - MI on August 01, 2003 at 08:33:33:
That was better than the Top 10 on Lettermen last night
Can you Help Someone with Zero Equity? - Posted by Maria
Posted by Maria on July 31, 2003 at 21:20:55:
Is there any way to help this person:
FMV $429K (I think its more like $420K)
LOANS: $420K
PAYMENTS: $3000/month
CURRENT RENTS: $2200/month
The house, which is actually called a duet (one connected wall, two houses together) is only 4 years old.
The only possibility I can think of is a lease option, although I would not want to be in the middle of this one. I think property values are going to fall in this area, long story. Is anyone out there who is more creative? The lady needs immediate payment relief. She is about to lease it for a year to the housing authority who will only pay $2200/month but at least it helps her somewhat on the payment. I think this is one of those people who cannot be helped but I wanted to see if someone else out there can see something I can’t.
Re: Can you Help Someone with Zero Equity? - Posted by Eric_Tx
Posted by Eric_Tx on August 01, 2003 at 08:54:02:
The one thing I see that was not mentioned would be a shortsale with the bank. Provided they would be willing to give you what you would be willing to pay for it. Being that I am still new with only a few deals under my belt I would (a.) call other investors to see if they had an interest in it, or (b.) run away very fast… Those kinds of payments are more than I could handle.
Eric_Tx
Re: Can you Help Someone with Zero Equity? - Posted by Jasonrei
Posted by Jasonrei on July 31, 2003 at 23:38:51:
When you can’t see a solution I think it is smart to ask others if they do. There are so many ways to twist things. Unfortunately, I don’t see one here… but if you really wanted to get creative (and since you only put so many constraints on this deal) I would suggest the following possibilities:
too valuable of a property - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on July 31, 2003 at 22:26:40:
Maria---------
In my view, this should not be a rental property. It is too high priced. The rent is something like 1/2 of 1 % a month of the property value. That is way too low. This is why I recommend people buy properties in as low priced an area as they can stand.
I’d recommend that she sell the property. Since the loan is the same amount as the value of the property, she could do a subject to FSBO sale and be out from under the payment. The buyer would have to pay the mortgage payment every month.
Good InvestingRon Starr*********
Every deal is not a deal - Posted by gerald(tx)
Posted by gerald(tx) on July 31, 2003 at 22:23:10:
Don’t try to force it. The more experienced RE investors usually walk away from over half the properties offered them.
But the newbies just out of Seminarland will try to use some creative technique they have just learned, (like having the seller make forward payments) and want a deal so badly they will jump into these things.
There are too many good deals out there to waste your time trying to make a bad one work.