How does this deal sound to you? - Posted by Richard
Posted by Richard on January 31, 2000 at 13:58:38:
This weekend, I verbally agreed to buy a house going into foreclosure (auction late May). My intent is to find someone to assign the contract to as soon as the ink is dry (I have zero interest in being a land lord at this time). The contract will have plenty of escape clauses, so I am not worried about that. What I am worried about is finding some one to buy the assignment, and I’d appreciate you more experinced investors telling me if you be willing to buy such a contract (no I am not asking any of you actually do so!)
Here’s the specifics:
2bd/1ba, 768 sq ft ranch in less desireable neighborhood.
Assessed at $100,100; comps in the area last year averaged at $122/sq ft ($94,000) with the last being $127 ($97,500).
The house is in OK shape (built in '93). The roof looks in great shape and the house has brand new vinyl siding. If I’d keep it I’d have some work to do on the front door jamb, and I’d replace the carpeting and repaint the interior. The garage has been converted into a family room giving it an additional 250 sq ft of space. (But it still has concrete floor and florescent lights…)
The offer is for $83,000 (they were looking for $110,000 but want the heck out of the house.) I’m putting nothing down with closing out three months.
My question is: Is it probible that someone would want to buy this contract from me for, say, $7,000 (total $90,000)? Or am I going to be lucky to get $7 for it?
Your answers will be greatly appreciated as this is the first time I’ve had an offer accepted. (Your reasonings will also be appreciated!)