Help figuring out a deal! - Posted by Olga(SoCA)

Posted by Jim Holmes on January 27, 2000 at 22:54:26:

Olga,

I’m with Fred on this one. Unless you get this house for no interest for 6 years…this deal doesn’t fly. We can buy a lot of houses, however, the question is can we afford to own them?

With your fix-up your above the comparables. I’d keep looking. Find a fixer upper under 20% of the comparables after fix-up. Then you will have a deal. With an 80% loan you could then pull out your money.

Good luck to you.

-Jim from Idaho

Help figuring out a deal! - Posted by Olga(SoCA)

Posted by Olga(SoCA) on January 27, 2000 at 17:54:04:

I’ve been trying to do my first deal for the last 6-7 months & had no luck. Finally, I decided that I got to close a deal by the end of Feb. and I really need help.

Here is the situation 3+1 vacant, fixer house Needs $6000 worth of fixing. The owner wants somebody to assume the loan of $108000 with no down. The comps averaged to $106k
The payment is $1030

Is there a deal here & how?
Thanks

Re: Help figuring out a deal! - Posted by Olga(SoCA)

Posted by Olga(SoCA) on January 28, 2000 at 10:50:44:

Thanks a lot from everybody.
What about “subject to” deals?

Re: Help figuring out a deal! - Posted by Chris

Posted by Chris on January 28, 2000 at 06:51:11:

Olga-

It would be best to move on to a new motivated seller.

You are into this for $114K and the property comps out at $106K.

Unless you could talk to the lender about discounting the current loan on the property this just isn’t a good deal. Mention the poor condition of the property with pictures of the worst areas.

Under the current debt level, even if you could rent this out for a positive cash flow you would be stuck with the property for some time until it appreciated in value. You would not have an exit. You must also remember that it will be harder to rent out in this condition. You would possibly have to rehab it while vacant and then you are stuck with expenses and no income.

-Chris

Re: Help figuring out a deal! - Posted by Fred

Posted by Fred on January 27, 2000 at 19:45:45:

If I am understanding you correctly,he wants 108000 for the house.The market value is roughly 106000 and the house is in need of 6000 in repairs. This is so far from a deal. Knowing what a deal is can take on a couple of different forms depending on what type of investor that you are selling it to. If you e-mail me I could give you the formula. Right now I don’t have time because of an engagement that I must attend.