Posted by Clair-MO on September 19, 2003 at 11:17:07:
Chris, I would suggest in doing a wraparound mortgage with the first if she has any equity in her home why suggest to her to refinance to draw out the equity or if you would like to refinance the property yourself and draw the equity out of the home to give her money to move on and have her carry back a second mortgage at 6% to 8% and pay her interest only payments. Just a suggestion.
Need help with fsbo… - Posted by chris
Posted by chris on September 19, 2003 at 10:19:48:
Hello realestate world… My name is Chris and I’m new to realestate. Actually, I’ve been studying for 3 yrs. but have not worked a deal yet… Here’s the plan…
I work with this young lady who is going to be moving to Fla. in November… She is desperately wanting to sell her home… Her pay off bal… is 32,000.00, and she is asking 54,000.00 (that’s with a realtor involved…In a couple of weeks the house would not be in the realtors hands anymore (be it doesn’t sell.)…
I’m desperately wanting to get this property… She already has two renters willing to rent, but she doesn’t want to manage the property from afar. My problems is that I’m building my home (right now), for 22000.00, and am scared to work such a deal. I’m sure without the realtor I could buy for at least 44,000.00… Can anyone give me anyhelp as to what am I to do next… Any suggestions would be greatly appreciated, and Thank YOu in advance… Chris
P.s… no liens etc…due
Re: Need help with fsbo… - Posted by Chad NoCA
Posted by Chad NoCA on September 20, 2003 at 03:42:19:
Chris,
If she is willing to rent, then offer her a lease/option deal. Set up rent payments to cover her PI and get her to agree to pay Taxes and Insurance (title remains in her name until you excercise your option). Sell her on the benefit of a renting without needing to manage the property (you plan to buy it in the future and will take good care of it) and recieving reliable rental payments. Also she will be able to write off the interest payments against her income up until you excercise your option. Set the option price at $44,000 and try to get an option period of at least 3-6 years. You could then get a renter of your own to cover cost until you can borrow against your new home and excercise your option, or you could sell it on your own lease/option and ask for 2-3K down for a two year option at 54-60K selling price. Set your monthly rents for your tenant 100-200 more than your rents to the owner and you have a nice cashflow while waiting for your tenant to excercise and pick up your equity spread check. Definately read more about this type of deal on this site before going ahead. good luck