Posted by Rick Wheat on February 01, 2001 at 08:39:39:
to structure an offer. Flipping it to another investor for cash is just one way, but it is the LEAST PROFITABLE way. Quickest, probably, but least profitable.
Why don’t you get him to agree to sell it subject to the mortgage, back payments and taxes. You then find someone willing to pay you $8,000 down for the opportunity to buy it, fix it and sell it retail ($3k goes to cure the payments and taxes, $5k goes to you). You would carry the payments for him, (charging him say $200.00 more than your payment would be), and give him a limited time to repair and market the property. Six months should do nicely.
This way, the Investor/Buyer doesn’t have to come up with $30k to buy it, plus $15k to fix it, plus holding costs. He just needs the $8k, plus the repair money as it becomes necessary.
The value of an Owner Financed property is much greater than one requiring all cash, so you would probably be able to get much more than $30k for it.
Owner Financing - the greatest invention since the all-you-can-eat buffet!
p.s. - if you’d like more details on structuring an offer like this, email me.