Posted by Charles on January 13, 2000 at 21:39:13:
ok, ifound a distress piece of land 20 miles outside Tucson,AZ- its a 4.13 acre parcel- the comps for land alone are at 34K-
water,elec, phone is all to the lot line.
The sellers are 20 months behind, foreclosure is pending.
I offered them $1500 to walk, + a $1000 trust deed to be stuck on the land as an additional blessing. I will assume the 1st of $14,500
I am borrowing $6700 from a friend to reinstate the land and give them this $1500.
Problem, i offered him too much i think on his return.
I offered 125% ie. his principal back, bringing it to a total payback of $15,025.
This will be a 2nd deed of trust and the $1000 a 3rd,.
Numbers after reinstatement:
Balance on 1st deed of trust $14,500
I will owe 2nd deed of trust $15,025
3rd deed of trust (sellers) 1,000
As soon as we close, I will move a repo’d MH (1998 singlewide, good condition) onto the land which will cost $42,500 INCLUDING ALL HOOK-UPS, SEPTIC, ETC ETC financed over 30yrs
SO MY TOTAL “IN” ON THIS WILL BE $73,025
I am now finding out that whereas i thought the comps were $90,000 or so, they are really only $80,000 -
THE DEAL NOW SEEMS TOO THIN!!! I OFFERED THE INVESTOR TOO MUCH RETURN!
PLEASE HELP! I have deposted $200 in escrow, and I am thinking of backing out!
Whats my solution/??
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