Posted by Marc/ATL on January 29, 2000 at 21:43:28:
One thing you can count on when on this site, there’s a lot of people here to help. Ed has helped me out (magic) and many others. I’m a newbie here in Atlanta also, see you in FEB?
Marc
Could This Deal Be Saved? - Posted by Tyler(Atlanta)
Posted by Tyler(Atlanta) on January 28, 2000 at 23:00:16:
I got a call from my ad. The seller wanted to sell a 3/2 in good condition and in a good area. He had an appraisal for $114,000, but was asking $110,000. He owes $79,000 on a first and $5,000 on a second. Payments are $760 and $250, respectively. He’s selling because he’s building another house and needs the cash. He wasn’t interested in any owner financing. I couldn’t figure out how to give him his cash and make money on the deal. I’ve since found out he listed the house with an agent for $109,000.
I would appreciate any ideas on how this deal could have been put together to meet his cash needs and make a profitable deal for me.
Thanks…Tyler
Re: Could This Deal Be Saved? - Posted by Ed Garcia
Posted by Ed Garcia on January 29, 2000 at 09:53:51:
Tyler:
The first thing we have to realize in this business is, not every deal is a deal.
Obviously if you could purchase this property for $84,000 and the value is
$114,000 as you state. Then you would be buying it at 73% LTV.
At those numbers this deal could make sense.
However, you don’t seem to have a handle on the motivation of the seller.
With out a motivated seller, ( and by the way you have already stated that the
seller does not want to carry back) you have no deal.
You now know that he has listed the property for $109,000. No matter what
price he takes, he now has to pay a realtor. My guess is 6%, which is standard.
So when you state, I couldn’t figure out how to give him his cash and make money
on the deal. That was you clue, that there is no deal.
What you need is a motivated seller, or to know the turn buttons of this one.
Ed Garcia
i wouldn’t waste time on this one…(nt) - Posted by steph in tex
Posted by steph in tex on January 29, 2000 at 08:14:30:
nt
Re: Could This Deal Be Saved? - Posted by Jim IL
Posted by Jim IL on January 29, 2000 at 01:34:57:
Tyler,
Not to be offensive or anything, but how could we answer that without knowing his “cash needs”?
How much did he need?
Thanks,
Jim IL