Posted by EDDIE FL on March 10, 2006 at 06:11:45:
You do not mention if the seller is behind on payments? To do a short sale, seller has to be in default. Depending on his situation, financially, and his payments, you may consider a L/O or subject to. Need more details.
HELP ,FIRST DEAL!!! - Posted by kenneth
Posted by kenneth on March 10, 2006 at 24:14:56:
Hello all. First of all I would like to say thanx in advance for anyone helping me out with this situation.
FACTS: I have been marketing like crazy and I might have a deal. I have found a seller who needs to move back home to florida. He has already quit his job and needs $2k for moving expenses.
ARV: 127k
Contract for 106K for 45days ($2k included in contract). Seller owes 104k on mortgate.
I am thinking there is not enough equity in this property to flip to another investor as a wholesale. Yet the property needs no work and is in okay condition. My question is…would it be in my best interest to find a short sale partner for this deal? Can I even do a short sale on this property. And if I can’t do a short sale should I use a hard money lender( I am not comfortable using a hard money lender because I do not wish to purchase anything or be liable for the funds) I know I am supposed to be a problem solver so I know there is some way I can make money on this deal…it being my first. Please Help.
Re: HELP ,FIRST DEAL!!! - Posted by Pat
Posted by Pat on March 10, 2006 at 20:48:04:
As I see it, you have 2 problems to overcome. You say you have it under contract for 45 days? Depending on when the “effective date” is you are now working against the clock.
Problem #1) The time to find a partner is BEFORE you commit to a deal Always have a game plan as well as plans B&C otherwise you run out of time and credibility.
Problem #2)" I do not wish to purchase anything or be liable for the funds" Remember what I said about credibility? Being a “problem solver” means being able to deliver the goods (close the deal). Not having a game plan makes it sound like you’re making a frivilous offer. You won’t last long if that’s the case
Re: HELP ,FIRST DEAL!!! - Posted by pat
Posted by pat on March 10, 2006 at 15:06:26:
go in with a sub2 and get a tenant buyer. the tenant buyer will give u
5-10% of the price you ask. that should be around 10k. and cover the
monthly payments until they buy.
or float it on a credit card and pay yourself back when you find a tenant
buyer
Re: HELP ,FIRST DEAL!!! - Posted by CHRIS IN FL
Posted by CHRIS IN FL on March 10, 2006 at 12:47:44:
KEN,
AS FAR AS WHOLESALE GOES, THAT IS PRETTY TIGHT. YOU MIGHT SQUEEZE OUT A LITTLE IF YOU FIND THE RIGHT INVESTOR. MIGHT SELL TO A HOMEOWNER, TOO, SINCE YOU HAVE 45 DAYS. HOW ABOUT AN AD IN THE PAPER, “SACRIFICE HOUSE $10K BELOW VALUE, BUT MUST PAY CASH AND CLOSE QUICKLY”. YOU MIGHT GET AN INVESTOR, OR POSSIBLY A HOMEOWNER. IF YOU WERE IN MY BACK YARD I WOULD GIVE YOU A FEW THOUSAND FOR A DEAL LIKE THAT, NOT A LOT, BUT I AM PRETTY AGGRESSIVE FOR DECENT HOUSES THAT DON’T NEED ANY WORK (AND YOU DON’T STEAL THOSE KIND OFTEN). PROBABLY TOUGH TO SHORT SALE IF MORTGAGE IS LESS THAN VALUE AND NEEDS NO REPAIRS, AND DEFINITELY CAN’T SHORT SALE IF SELLER IS NOT BEHIND ON PAYMENTS. I WOULDN’T SPEND MUCH TIME TRYING TO PURSUE THAT. GOOD LUCK!