Posted by Sandy on June 29, 2003 at 12:03:04:
they do and they have helped me in the past.
Help needed on an ‘Subject To’ Deal - Posted by Sandy
Posted by Sandy on June 25, 2003 at 22:21:15:
I purchased the Grand Kahuna of Real Estate Investing from Charlie and Randy France but they have been very busy lately doing seminars and I need some serious help ASAP.
My partner and I put up the signs and we snagged a big fish or atleast I have something yanking at the line. We need help determining if it is the real thing or not.
The situation:
Young mother willed a house in 1999 that her parents purchased in 1995. She is on welfare. Her husband in jail. She wants to move her kids and herself to Florida. She is about to file bankruptcy. The house needs some repairs (plumbing, carpet, paint, pool pump, appliances, and one door). She is behind on one payment, catching up alittle at a time. She also just found out that her parents had a second and a third on the house that she did not know about thus never had made any payments on. Not behind on taxes. And wants to move in August. She might have the ability to pay off the 2nd and 3rd mortgages. Oh, by the way this is the worst house in the best neighborhood and it is in pretty good condition. Now on to the finance part of this deal.
4 bedrooms, 2.5 baths, 1669 sf,built in 1991, 1 car garage, fireplace, in-ground pool
The financial part:
Assessed Price: $1132,100
Appraised Value: $145,000
Original Loan: $108,150 Int. Rate: 9% PITI: $1043
Annual Taxes: $1678 Annual Ins.: $600 (approx.)
Assoc. Fee Monthly: $100
American General: $10,000 (2nd)
Transouth: $11,000 (3rd)
Current Balance: $94,000
I did a CMA and the houses are selling as follows:
Low: $128,000
Average: $136,600
High: $146,900
Longest Market Time: 26 days
We sent her our Special Report and she read what we do and she is very interested in what we might have to offer her.
My question is what do you think we might have to offer her?
Is this deal worthy?
If so, what should we offer her?
And what should we do from here?
Your help is appreciated!!! Thanks in advance. Enjoy your blessings and God Bless! I pray that I did not leave anything out…
Re: Help needed on an ‘Subject To’ Deal - Posted by Chuck D
Posted by Chuck D on July 10, 2003 at 01:13:11:
I hope I’m not too late to respond. I am just starting in Real Estate so I’m not a seasoned vetran but I will put in my 2 cents worth.
The biggest hurdle to overcome seems like the bankruptcy. She (or you) will have to pay the 2nd and 3rd. Why would she pay it off and then file? Is your current balance including the 2nd and 3rd or not? What is the total payments on the 2nd and 3rd? Take all payments, add in taxes, insurance and assc. fees and all totaled looks like 1350+ per month. Can you get this in rent? Why would she not include this in her bankruptcy? What does she have to gain by selling the property to you? Any money she would make seems like it would go to the court.
If you overcome the bankruptcy hurdle, there are other questions. What are you planning on doing with it? Are you planning on a re-sell, renting or lease optioning? What would rents in the area for a simillar go for? Is it livable as-is? Could it yield a positive cash flow? How much cash are you bringing to the table? It seems like it could be a very good deal to buy it for 94k and re-sell for 120+.
If you have some extra cash, I would talk to your lawyer about the bankruptcy issue and even ask to sit-in with her and her lawyer to see what deal you can work out. You would hate to have her file and include that property and have her bank foreclose.
You could offer a straight-up cash deal of 115k and pay off all mortgages, but if it is the worst house and your low end is 128K, your not going to make much by flipping. And if you have cash, why bother with this one? There has to be much better deals in the area.
I hoped this helped more than a cut about your program. Please keep us informed of the outcome!
Re: Help needed on an ‘Subject To’ Deal - Posted by Sandy
Posted by Sandy on June 29, 2003 at 12:05:28:
Why is it that I receive a lot of smart comments, but know help with my situation… all of these so called experts and no solutions. Thanks alot!!!
Re: Help needed on an ‘Subject To’ Deal - Posted by Dave M
Posted by Dave M on June 27, 2003 at 17:24:15:
I thought Randy & Charlie continued to help their students after the course sale? Won’t they help you if you ask for information?
Dave M.
Re: Help needed on an ‘Subject To’ Deal - Posted by Nancy
Posted by Nancy on July 31, 2003 at 11:58:29:
Hey
For an unseasoned veteran in RE you sure are asking some good questions…