How should I write it up? - Posted by Gerald(NC)

Posted by Gerald(NC) on October 05, 2005 at 06:19:02:

I already have a lender that will.

How should I write it up? - Posted by Gerald(NC)

Posted by Gerald(NC) on October 04, 2005 at 22:13:57:

O.k. I wanna do this deal without my partner’s typical contracts I’ve spoke about here that so many find problems with, (including myself).

I have a buyer, and I have a home. The home is a triple wide mobile home on 1.25 acres. Tax Value $107k, I can get it for $92k, she’s going to buy for $99k. (this was worked out before I knew about the deal).

How should I contract it to her? I need to contract to buy it myself I suppose as well from it’s original owner. How would you do it?

I considered “assignment” of course, as it seems easiest. I just don’t want to turn them off for one. For another, how does this work out when being financed? Cuz they are getting special financing for the home, (co-signer for no credit son, and the co may not even be able to qualify, don’t know yet.)

Now, if she doesn’t qualify, I see it much easier. As I then purchase it, working the closing costs into the financing. The owner, a company, will carry a 10% 2nd I know, as he already said so. That way it will be no out of pocket for me.

I’ll get the $3000 they have to put down right now, as an option fee. Of course, work in some cash every month as cash flow for me, then on the backend, (12 months), I’ll collect the other $7k. Sound right?

I also have the option of purchasing some Modulars. I can get them at like $40k less than real appraised values. HE wants $1000 and a contract on them. Should I do it?

I’ll have atleast 3 months before the first one is set up and ready to move in. The lot has already been purchases for it. It’s a cape cod style 1800 sq. ft. to be set on .5 acre lot, in our lil small town close to all the best schools around here. He sent me the appraisal, with land, showing it worth $162k. I can get it for $120k right now. Sound good?

Re: How should I write it up? - Posted by lukeNC

Posted by lukeNC on October 05, 2005 at 21:01:02:

why not get a buyer who is already approved?

Re: How should I write it up? - Posted by John

Posted by John on October 05, 2005 at 04:54:55:

Something to think about. Mobiles are hard to finance, most lenders will not touch them. Lenders that do will want 20% down min.

Re: How should I write it up? - Posted by Gerald(NC)

Posted by Gerald(NC) on October 05, 2005 at 22:01:33:

Pre-approved or not. After speaking with my lender I’ll have to definitely either get an assignment fee in cash or do a seperate note for it. It can’t be added to the HUD1.

Now you ask why not work with someone preapproved? 1. This offer was made available because the buyer was there, just the home owner couldn’t get them financed himself due to the boy not having a credit score at all. He’s got new credit, but no score yet. So he contacted my partner, who then threw it out here for 3 of us to take if we wanted, so I jumped. I’ve got a new lender, even my partner doesn’t know about, that can possibly get it done with his parents co-signing since they gonna be living there as well.

I do know one of the other guys has 3 people pre approved through one of our lenders. I am thinking of seeing if I can find out who they are, and use them myself, cuz he doesn’t seem to be, and the lender is upset cuz he put in the effort to get them approved. But I don’t know what area they wanted anyway.

With this deal, the family really wants the home, and if I can make it work with them, then why not? I know they got $3k in cash. Now if I can get their financing worked out, I can actually sell them the contract for the $3k and just call it good. They can then get the house for $92k, (and their $3k fee), instead of the original $99k they were lookin at paying. I’ll take $3k instead of $7k if I know I can get it done for sure, and then just walk away after they buy the contract and not have to hold their hand anymore.

What I was originally looking for was a way to include the assignment fee into the purchase contract so that it could be included on the HUD1 form, and they could get the lending for the whole deal, and I would collect my $7k from escrow itself. But apparently that can’t happen like that.

Also, only charging them the $3k, and selling them the house cheaper will buid trust better I think. And keep them from going around me, or trying.