Is this deal worth pursuing? - Posted by Toan

Posted by Toan on September 30, 2003 at 17:44:47:

Probably Rental or L/O

Is this deal worth pursuing? - Posted by Toan

Posted by Toan on September 30, 2003 at 16:33:32:

House built in '94, comps around 155k. Owner owes 101k on the mortgage (54k in equity). Has made lots of improvements to the house, but still need about 7k in repairs.

Owner wants 30k out of the deal. I might talk him down to the mid 20s. He seems flexible, but not desparate.

Any advice on how to pursue this creatively with little cash out of my pocket?

Thanks.

Re: Is this deal worth pursuing? - Posted by Randy

Posted by Randy on September 30, 2003 at 16:48:09:

How does he want his $30k? Is he willing to carry a 2nd for part or all of it? Can you structure a Sub2 giving him 8%-9% on a 2nd with a 1-2 year balloon? Offer more cash for a discount (10%-15%)? What is your exit strategy? Rental, L/O, flip retail?