I'm Still Trying to understand - Posted by James L.

Posted by Heather -Tx on September 19, 2003 at 21:11:28:

In this instance you could take over their loan (Type sub2 in the search fields and you’ll find a wealth of info on how to do that) And then either come up with the 10K in cash, or have them take a second on the home for the 10K
If you were looking to hold it for a longterm rental, then make sure that the rents would cover all expenses, with at the very least $100 monthly cash flow.
Or you could lease option it out (again just type L/O in the search field above ) And collect a nice option consideration up front… and collect a little above market rents since they would be looking to purchase the property at a later date.

I myself do not do these types of deals, I prefer buying at much bigger discounts for all cash (Rehabs yeah!) But alot of people tell me how wonderful the L/O are. I did take over a home sub2 though, rehabbed it and resold, this could be another option.
You have to decide first what your exit will be… do you need fast cash ? Or are you looking to buy and hold for the long term. Figure out your needs and then search here for which of those needs fits… and learn how to do it very well.

I’m Still Trying to understand - Posted by James L.

Posted by James L. on September 19, 2003 at 18:00:34:

Hi, I’ve been doing research because im curious as to how the world of REI actually works. And as you may very well know being new to something you know nothing about spawns an overwhelming amount of questions and “what if’s”. so i’ll try to keep it to a minimum.

Lets say i was able to find a motivated seller… with a home valued at $100,000 and he/she still owes $75,000, and are willing to sell the house for $85,000… what are my options? what should my next step be? Is this a good Deal?

ME as the buyer, having no money, no credit worth being finaced by a bank or Mortgage company. How would i come up with the 75K to buy the house and the extra 10K the seller wants to walk away with at closing.

maybe im not seeing the big picture. but how can this deal be finalized with no money out of my pocket?

any help explaining this process would greatly be appreciated. Thanks in advance.