Posted by Wai Chung on August 21, 2003 at 08:34:40:
Brent(IL)
thanks for explaining, I keep that in mind~
-Wai Chung
ideas to help put deal together - Posted by Erin
Posted by Erin on August 20, 2003 at 14:47:51:
Hello, Here is the situation
Seller has 3br/3bth home in nice area. the house is worth around 125k to 135k. Seller is asking 141,500. Probably too high. Realtor is not showing the house much. The seller needs around 30k to close on a land deal by the end of the month so that he can put a manufactured home on the land. He can’t close on the land till he sells the house or has cash to pay the 30k. He owes around 118k on the house. I think I could do a lease option to sell the house no problem in that area. But he needs the 30K now. Any ideas on how to get him the cash he needs and still let me do a deal. Could I do a subject to of some type or get partial financing to get him his cash? Perhaps I am just grasping at straws. Thanks for letting me brainstorm.
Erin
Re: ideas to help put deal together - Posted by Wai Chung
Posted by Wai Chung on August 21, 2003 at 05:12:08:
I am fairly new but here’s what I have read and the idea popped. Since I don’t know how much the fair market rent and other numbers are. May be it can/can’t work.
-Do the lease option/subject-to from the seller, give him a price closed to asking.
-negociate for longer term & no-payment for a period of time if he wants that 30k today.
-create a note & sell that for cash.
-l/o it out
pls let me know how it goes. good luck
-Wai Chung
Re: ideas to help put deal together - Posted by Brent_IL
Posted by Brent_IL on August 21, 2003 at 02:42:16:
The REALTOR® is not wasting his time and you shouldn?t waste yours.
Can it be done? At great odds with much negotiation.
Can you do this? No.
Should you do this? No.
Re: ideas to help put deal together - Posted by Brent_IL
Posted by Brent_IL on August 21, 2003 at 05:56:31:
Well, the main problem (there’s several) with this approach is that you will never be able to sell the note. The guy owes $118,000 and if Erin puts in $30,000, we’re up to $148,000, before closing costs, on a property that’s worth $130,000, maybe.
It’s not so much the seller’s asking price, which contains a lot of air, as it is about the $30,000 in cash.
What payments are not to be made? If payments are not made on the first, the house will go into foreclosure. The only way there will ever be any longer term or no-payments to negotiate about is if the $30,000 is reduced.
In the end, we all do what we want to do, but if this deal is done as described, there is no doubt in my mind that the $30,000 will be on permanent hiatus.