Not much meat on the bone here, BUT… - Posted by Michael Morrongiello
Posted by Michael Morrongiello on February 11, 2001 at 19:47:51:
Although it might be feasible for you to negotiate a way for this motivated seller to be able to sell their home, and get out from under their existing debt, there is really not a lot of “spread” or equity here between what this seller owes and what you might be able to retail the home for. I generally look for opportunites where there is no more than 65% owed against the possible retail sales price. In this instanace that would be around $45K or less.
However, you could market this home FAST for the seller by using OWNER FINANCING as both a marketing and financing tool. If the home sells for $69K and you can get 10% cash down, then the note balance of $62,100.00 could be sold to generate around $57,000.00 +/- in cash. This $57K cash along with the 10% cash down payment ($6,900.00) provides approx. $63,900.00 in cash. This is certainly enough to pay off the existing debt, help these homeowners stave off a foreclosure, and put a few dollars in your pocket for your trouble.
To your success,