Here is a new deal for me..... - Posted by CH-CA

Posted by Paul Carlin on April 24, 2000 at 18:31:12:

There must be a reason they are willing to let all the equity go. Unless there is more emotion that logic in thier actions.

Here is a new deal for me… - Posted by CH-CA

Posted by CH-CA on April 24, 2000 at 17:52:34:

Here is deal that is forming for me:

. Single family house in default.
· 1st Mortgage at 117K, with no other liens.
· Property valued at around 190K (could be a little higher or lower).
· Under $1K in back payments.
· Owner and boyfriend want 5K each to walk.
· Nice lot size with little apparent fixing (from outside).

Here is what I see for me:

· Take over payments of 117K loan.
· 15K total costs (from equity line of credit or other source if I can find one).
· Minor cost to refinance.
· As long as there is no inside damage, sold as is for a quick turn-around.
· Sold for as little as $162, which after costs would come to around $30K in profit.
· Not taking into account for cost to hold property if I cannot sell right away.

I just wanted to run this by you great investor people to see what you think of my line of reasoning. Anything I missed? Any other ideas for this property?

Actually, there is one other cost I have to incur: my agent came to me with this one and said he would add in his commission costs too. What about working with agents on defaults?

Re: Here is a new deal for me… - Posted by Bill K. - FL

Posted by Bill K. - FL on April 24, 2000 at 19:40:44:

Chances are the taxes are current if the lender has been escrowing them. Also double check on the passed due payment amount. Are you absolutely sure there are no other liens, possibly a second mtg. This definitely needs to be checked out. I always check first myself and then make the offer contingent on no other liens except those I am willing to accept. Make sure to get title insurance. If this house has the amount of equity you say it does and is in the condition you say it is, then it would be suitable for a quick flip to an owner-occupant who gets new financing thru a simultaneous close. Don’t be greedy but you could still make your same profit or maybe more with a lower resale price because your costs will also be lower. Look at it from that angle.
Remember, a fast nickel is better than a slow dime.