Posted by AdamFL on February 03, 2002 at 22:05:03:
Ok. Why not take the house subject 2 and offer to pay him the “remainder” when you’re cashed out. Now you’ll have to determine what the “remainder” is. If it’s worth $270, and you can sell it on a L/O for $300 then you can give him $80k when you’re cashed out. If it were me, I’d try to negotiate a lower purchase price altogether. One thing to consider – given the price range of this property, how difficult/easy will it be to find buyers?
Here’s what I’d consider doing… (1) get an option on the property while you look for a buyer. This way, he’s making payments instead of you. If you find a buyer, get the deed and boom! Pay him when you cash out.
(2) L/O from him and get him to make payments for, say, 3 months while you find a buyer. Same plan as above.
Hey all~
I got my first call from my ad in the paper, and would greatly appreciate any suggestions. I was so nervous, I didn?t get a chance to ask all the questions I was suppose to =oP A gentleman wants to sell his home asap b/c he needs to relocate. The house is a 3/2 in a very nice neighborhood selling for $270,000, which is also around the market value. I told him he?s not going to get that amount because he?s dealing with investors. He understands that, and is willing to be very flexible and willing to do owner financing and take back a 2nd mortgage. He has a $190,000 loan on it currently. No repairs are needed and he saids its in great condition. I told him I would get back with him with several offers.
I need some advice as to how to come up with offers if that is possible at all, or do I need to get more information first? I?ve been on a marketing frenzy, and now that calls are starting to kick in?I?m not sure how to structure the deals. So I hope I can get some advice from here and learn on the way. Thanks in advance!
Posted by AdamFL on February 03, 2002 at 09:23:27:
Cat,
You don’t mention your intentions/exit strategy with this property. Do you want to flip, L/O, subject2, buy and rent?? Also, what does the seller NEED? If the seller doesn’t need a lot of cash, you can possibly take the property subject to the existing loan, lease option, etc. If he needs mostly cash, can you come up with the money?
There are a lot of options here given that the owner has around $80K in equity. These options will depend on what this seller needs and what your investment objectives are. If you provide more details, I’m sure many of us can offer assistance.
Adam,
Thank you for your response and patience with this newbie =o) For my exit strategy, I was thinking about either taking it subject to or l/o it. The seller does not need a lot of cash right away, so he’s willing to put up a 2nd mortgage. Is that enough details to come up with some offers? What are the next steps I should take? I’m not sure how much below asking price I should offer and how low the downpayment should be, if any??
Thanks again!
Cat