Re: Gotta sell my house soon and need help! - Posted by JohnBoy
Posted by JohnBoy on April 26, 1999 at 24:16:13:
You can sell on contract for deed or Lease Option it. The main question is whether you want to have to deal with this later after moving out of state. If not, then I’m sure you could find several people from this site living in Florida that would be willing to take it over for you.
If you want to deal with it all yourself then you can get a decent price and a monthly cash flow off of it.
Run an ad in the paper under “homes for sale” and “homes for rent” in the classified section.
NO BANK QUALIFYING!
OWNER WILL FINANCE
NICE 3bd/2ba House
Only $1200 Month
When people call ASK them how much they can put down? Don’t tell them what you want down first. They may offer you more than you would take. You should be able to get at least $5k down on a $100k home. When selling on contract or a L/O you can get above market rents and price because of the terms your offering.
Sell for $115k with at least $5k down as “Non-refundable Option Consideration” at $1200 per month rent on a 1 - 2 year L/O.
Or sell on contract with at least $5k down at 10% interest amortized over 30 years with a 3 year balloon. Their monthly payment of principal and interest on $110k would be $965.33 plus taxes, insurance and whatever your mortgage insurance is. In 3 years they will have to get a new loan to pay you off which the balance owed to you in 3 years would be $107,966.78.
Your PI is probably around $697 per month. Your buyers PI would be $965.33 leaving you with a positive cash flow of about $268 per month.
$268 x 36 months = $9,648 + $5k down = $14,648. At the end of 3 years they still owe you $107,966 and your pay off will be around $93,200 (estimated) leaving you another profit of 14,766.00.
$14,648.00 + $14,766.00 = $29,414.00 total profit over 3 years!
Don’t even think about listing it with a realtor! You will take a loss at this point. If you don’t like the above examples I gave and don’t want to bother with this, e-mail me and I’ll go to work on just taking this off your hands for you if you want.
You can make out pretty good on this one if your willing to sell on terms. Why just give it away??