Posted by judy on July 11, 2002 at 13:52:29:
This is new subdivision, no real comps yet. Another home on 5 acres near his is listed @ $700,000. Escape clause re:financing. Planning on flipping to investor group.
how do I structure this offer? - Posted by judy
Posted by judy on July 11, 2002 at 13:15:14:
1st deal, 1st offer. I need help–please
I have a very motivated seller. He is a realtor. He has a 5152’ finished (1944’ unfinished basement) cape cod style home on 3 acres with an incredible view. 2 years old. 4 bedrooms, 3 baths, formal dining, large office. 3 car oversize garage. curbscaped landscaping, large pine trees.
He has purchased another lot, building another home- 2 mortgages.He really needs to get out of this property. Will do lease option. Has private financing, possible assumption, does not have to have cash out at closing.
He was asking $569,000. he says his bottom line is $490 - 500. The current mortgage is $330,000 to 340,000. Monthly PITI is $2,262.00.
I need help with this. There are buyers out there who will respond to the right kind of financing.
Thanks for your help, ideas suggestions.
Judy
Re: how do I structure this offer? - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on July 11, 2002 at 13:23:53:
You didn’t say how much the place is worth. If it is on the market already for FMV of $569k and nobody is biting, then that is not a good sign. And purchasing for only 10% off of FMV is nominal as a lot of properties have this capability to move downward.
So his rock bottom is $490k, what is the FMV? Are you planning to sell it again on terms after you buy it to another who may want owner financing? What is your exit on this deal should you complete the deal?
And yes, there are always buyers who will respond with the right kind of financing. 