Flip advice needed please. - Posted by KevinMiami
Posted by KevinMiami on March 06, 1999 at 01:35:33:
I’m sure that this topic has been well discussed in this newsgroup before, but I would appreciate some feed back, so here goes. I’ve spoken to a pre-foreclosure seller who wants $85,000 (owes $75,000) for a SFH with a FMV of $115,000.I have a buyer who says he’s pre-approved up to $95,000 as long as he’s got 20% down, but he doesn’t. He’s willing to pay FMV if he can get a second mortgage. I told him that I might be able to get that for him, even though I haven’t told him that I would be the one writing the note. He’s willing to pay
- 10% on a note of $19,550 for 10 years ($3450/3% down).
- 12% on a note of $23,000 for 10 years (nothing down).
for the second mortgage and get $92,000 from his first mortgage. The way I figure it I can probably sell the note and walk away with about $35,000 CASH after all expenses. Am I doing anything wrong/risky/illegal/dumb here. Any advice would be appreciated.