Posted by ken in sc on August 17, 2003 at 16:04:13:
If we use the scenario of them fixing the roof, or painting or whatever as their dowpayment, I do not give them money until the work is done. Then, we go to their bank where they turn my check for repairs into a cashiers check back to me as downpayment. It makes it easier down the line when they are getting their loan if they have given you a downpayment. And they can’t take the money and skip if you don’t give them the money until the work is done.
Help structuring HandyPersons Special - Posted by Dee-Texas
Posted by Dee-Texas on August 15, 2003 at 09:55:35:
Hello All,
I’ve sold for cash, L/O’s, on a note but we usually always rehab everything. I have a 4/2 that’s a little rougher house in a low bluecollar neighborhood. If I started rehabbing this one, it would just not pay. So I want to sell in on a HandyPerson’s Special.
On a L/O I’ve advertised it as $475.00 per month and $2K down…$475.00 per month is avg. for a 3 bedroom this one has 4…so I thought maybe $525.00 per month with $800.00 down for a handyperson’s special? How do you experts handle this?
Help!
Great $uccess,
Dee-Texas
There are certain rules and regulations regarding what you can legally charge rent for. If there is anything wrong with the house it could be illegal to rent it but OK to sell it.
Years ago I saw a story on some poor person who was evicted from a house she occupied for 30 or 40 years. It was condemned for 7 major building code violations. They included no electricity, no running water, no indoor plumbing, no lath and plaster walls etc. I don’t remember the whole list but other than lath and plaster walls it described the farmhouse my mother was raised in to a T, and they were never considered poor or disadvantaged. Times change and standards change.
The other day when the power went out I rushed over to her house with emergency supplies of food, water, Coleman stove, battery radio etc. and found she was perfectly calm and didn’t see what all the fuss was about. Then I realised she never had hydro in the house until she was 26 so what’s the big deal about not having it for a few days?
Re: Help structuring HandyPersons Special - Posted by ken in sc
Posted by ken in sc on August 15, 2003 at 11:22:11:
Hey Dee! How’s things?
I have done that type of deal several times. I advertise “low down” and then just ask how much they have. If what the buyer has is not enough in my opinion, I just say he has to do X amount of work before I will sign the documents, and give him credit for that work as downpayment. Say he puts on the roof. That might be worth $2000, so once he does that I write him a check for $2000 which he cashed and turns into a money order back to me for the downpayment.
Of course, if the buyer says he has $3000, and that is enough, sign him up. I tend to kep the rent at $100/month more than my payment, so worse case scenario I eveict, keep the 100’s per month, and keep whatever work he has done on the house. Make sure your paperwork specifically says that any work done on the house, stays with the house to the benefit of the seller in case of default.
Re: I’ve never seen this mentioned but… - Posted by Brent_IL
Posted by Brent_IL on August 15, 2003 at 19:56:29:
Hi GL
I applaud you for having emergency supplies of food, water, Coleman stove, battery radio etc. on hand to share. Most people don’t have enough in storage to last for more than 2 days. Good job.
Re: Help structuring HandyPersons Special - Posted by Dee-Texas
Posted by Dee-Texas on August 15, 2003 at 21:13:27:
Hey KEN!! thanks for answering. So money has to change hands in the way of the downpayment?
I wouldn’t want them to fix the roof and then I had to pay for it, if they took the money and skipped.
Still trying to figure this one out.
Hope you and yours are doing wonderful.
Dee-Texas
Thanks. I don’t know why everyone doesn’t keep enough supplies on hand for 2 weeks. It’s not hard or expensive.
I have enough for myself and enough to share. It comes from living in the country and getting snowed in from time to time. If you are prepared a blizzard is no more dangerous than a pillow fight. This time I had to buy ice, everything else I had on hand.
And don’t forget some books and games, so you can enjoy your mini vacation while everyone else goes nuts.