How do we structure this deal? - Posted by matthew jurgens

Posted by Jim IL on April 29, 1999 at 23:57:59:

The numbers do not add up. Maybe I missed something, but these numbers do not make sense to me.
Property one:
"Current Market Value is $185k, Purchased $214k, Equity $205k, market rental $280/wk"
If it is worth $185k now, then where does the “equity” of $205k come from?
And, if purchased for $214k, then why is it only worth $185k?
And the “market rent” is $1120/month? That will not cover expenses on a $200k property. That looks like negative cash flow to me.

The same applies to property two for me.
Please explain better, you lost me on this one,
Jim IL

How do we structure this deal? - Posted by matthew jurgens

Posted by matthew jurgens on April 29, 1999 at 23:10:33:

Ok. I’ve got more detail now. He is not desparate for cash but wants to sell.
Property 1: Current Market Value is $185k, Purchased $214k, Equity $205k, market rental $280/wk
Property 2: Current Market Value $265k, 100% equity, market rental $320/wk

He has purchased and paid for $211k land elsewhere and wants cash to build a house with.

What options do I have to help him out and make some money?