It’s a 2 bed/1bath flat. between 1200-1400sq ft.
They owned it for 10 yrs, the last 5yrs they’ve been renting it and they’re at the point where they have to refi or sell it because of the balloon due the end of the year. They had a fha loan and then they refinanced at a lower rate with this 7 yr loan.
So they will have a 70k payment due at the end of year, and it’s with National City Mortgage. the loan is for 6.5% and she said w/taxes and insurance it comes to a little over $600/month. They are currently renting it for $780/month
They are asking $82k, the husband said he doesn’t want to go any lower than $80k.
I’m trying to do comps for the place online, but i’m waiting for some kinds souls on this site to refresh my memory as far as what are some comp sites for PA. (i have them all bookmarked, but my computer is disconnected, because i’m moving this weekend.)
When I asked how they came up with their price they said they had the place appraised a while back and it came in at 88K.
Ok so far I’ve read LeGrands Quick Flip book and I also got is whole package for wholesaling/Lease Optioning/Seller Financing at the convention…
I’ve only finished the Seller Financing Module of the set, but I’m familiar with both types of other deals.
Anyway, I had a seller call me today and she has a 2bed condo for sale. They were asking 82k and they have a 70k balloon due at the end of the year…is there anything I can do? I didn’t do any comps yet, but the balloon due at the end through me off…i wanted to find something to take subject to etc…but this one just throws my “plan” off a little…any help would be appreciated.
No way to tell whether there’s anything to do here without knowing the value of the property.
Right now you can take the property subject to…but obviously you’ll need to pay the loan off by the end of the year. One way to do that might be to sell the property on a wrap, season the note until the end of the year…then sell the wrap to a notebuyer.
Another way might be to retail the property now.
A third way might be to pursue the idea of renegotiating the existing loan…perhaps agreeing to pay down principle, change the terms in some other way, in return for an extension of the balloon.
But the factors that dictate possible directions you’ve left out of your post. Those are things like value, the terms of the loan itself, and possibly who the lender is (private or institutional).