Posted by Jeff P on February 18, 2001 at 16:39:48:
Thanks, Charles. That sounds great. How would I find out if the note is assumable?
Jeff P
Help on double property…Thanks! - Posted by Jeff P
Posted by Jeff P on February 18, 2001 at 16:11:26:
Hi, All
I found a motivated seller, now I need some help on putting this together…
Owner has two lots which back up to one another. On one is a condemned house. The other is an empty lot. I would tear down the small (very small) condemned house and build new, and get a variance on the other to put a house up (there was one there, but forty years ago). He is asking $40 K for both properties, because that’s what he still owes on them. But he is willing to consider anything, as long as he can get out of it, and not take a loss. He is paying $425 per month for both properties, with no income on either, obviously, except for a tax write-off.
I have already spoken to a builder in the area who buys land, builds new, then sells. Each lot should be worth at least $30 k to him, but I am not sure how much it would cost to build and sell in this particular area.
Although I am confident in my negotiation skills, I lack experience in structuring deals (until I go to Atlanta, that is.) I have no money for the down, so any input would be very much appreciated.
Thanks again
Jeff P
Re: Help on double property…Thanks! - Posted by Charles Steed
Posted by Charles Steed on February 18, 2001 at 16:34:53:
Why not get this deal under contract by offering to assume the sellers note. If he is truly motivated, a down payment isn’t as important as getting out from under. Allow yourself 60 to 90 days for closing.
Then go to the builder and offer him the contract for whatever the market will bear. Try for full price, but you have $20K to work with. Let the builder worry about demolition of the existing house and subdividing the lots…This might work.