Re: Help me please! - Posted by Vic
Posted by Vic on May 20, 2000 at 06:40:11:
Hi! I’m a real estate broker right here in Metairie.
I don’t know if you realize it or not, but River Ridge is a very hot market right now. Even though that’s the case, it is still very difficult to sell a 379K house.
It will probably take you a few mos. to do, & you may end up needing a real estate agent to get it done at that price level. You don’t have that many people looking to buy 379K houses that aren’t using a real estate agent. If someone can afford a house in that price range, they are probably a more sophisticated buyer than average. Their time is probably more limited as well, thus they use professionals to help cut down the search time.
Further, the offers you’re proposing probably do not address the seller’s needs. You need to find out what those needs are.
In one of your offers, you talk about putting down 5K. That won’t even cover the guy’s moving costs. In another offer, you talk about l/o. Unless the seller has an extremely high income, he would probably have a difficult time qualifying for a new loan, as 75% of his current mo. pmt. would count against him, when computing ratios.
If you have a seller that is willing to finance, & if you want to get involved with such a high priced property, your best bet would be to find out how much the seller wants as a down pmt.
In one of your offers, you said something about putting in 112K. If you have 112K in cash, the best way to handle this deal is to give him the cash that he wants (if reasonable) & then take over property using an Escrow Agmt. After you do this, turn around & offer the property owner financed also by Escrow Agmt. to a new buyer, getting your up front cash back from the new buyer & charging them a higher int. rate If possible, you might also try to get a higher sales price. Keep in mind that with an escrow agmt. in Louisiana, if you’re more than 45 days late on a pmt., the property very easily reverts to seller. There is no forclosure process on this. It’s automatic.
If you can negotiate a good enough int. rate from the seller, you can make your money on the spread on the int. rate & maybe a few thousand on sales price.
With that said, if it were me, I would probably pass on such a high priced property in this area, as it will be very, very difficult to sell, even using owner financing. Best to stick with the lower priced properties unless you’re willing to carry the property for some time until it gets sold.
If you need further help, just email me.