Need Ideas with first deal! Can I say NEWBIE ??? - Posted by Heather-Houston

Posted by David Alexander on April 24, 1999 at 01:58:08:


find out the comps(FMV) on the property, maybe you will have some room to work with. If you do you could possibly make some money buy putting it under contract,
and then marketing the property as easy qualifying instead of Owner Financing. Have a buyer get new loan for as much as it takes to pay off the old loan, pocket the down payment, and carry back paper for the balance.
This would give you more people that could qualify. You really need the comps so you know what you’re dealing with. You will also need a good mortgage broker to prequalify the people before letting them tie it up with a contract to buy from you.

David Alexander

Need Ideas with first deal! Can I say NEWBIE ??? - Posted by Heather-Houston

Posted by Heather-Houston on April 23, 1999 at 16:27:56:

Here is the scenerio. Went to look at a house today that I found online and have emailed the out of town owner who is VERY Flexible.
Heres the situation, although incomplete.

Owner has mortgage for $57K offered the house for 62K, but seems VERY likely just wants to walk away. Home is about to be forclosed, one notice has been served. He says it will be about two more months before forclosure actually starts. The loan is assumable WITH approval (which I doubt I can get) HE will not owner finance, he said he wants completely away from the property and all libility of it.
At this time still waiting to find out how much in back payments are owed (he calls me tomorrow morning to talk more) Current payments on his note are $708/month at 8.5% interest. This payment also includes taxes and insurance and so on.
Property is in very good shape except for a minor foundation adjustment in the garage. Everything inside (from what I could see) carpet… tile… fireplace buuilt in appliances security system, satalite the works…all looks to be in excellent condition.

The house has been on the market awhile it seems because the owner said he HAD a realtor but the contract was up. I know the last lease ended in Sept of 98 that he had in there.
Does anyone think it would be possible to negotiate with currnet lender a discounted note in this situation since it looks like its going to be foreclosed on anyway? I know banks sell mortages to other lending companies all the time, but would it work in this case and with a private individual instead of another lender ?
I need some ideas here… I doubt very seriously if I can qualify for the assumtion. I have only a couple grand cash to put into the deal. And to me the payment of over 700$/month for a 57K balance seems very high. THe loan was originated in 1991. PLeaseeeeee bounce some ideas off of me… I Know this is a good deal, and want to find a way to work it. Thx!

Re: Need Ideas with first deal! Can I say NEWBIE ??? - Posted by David Alexander

Posted by David Alexander on April 23, 1999 at 16:59:41:


Unless he will let you take the mortgage subject to, I see no deal here. You said he wants out of all liability, you can’t give him that.

What I tell people is that I will take over the payments,(fix it, clean it, which I try to do very little), and then resell it. I explain to them that I will do my best to have the people refinance, which could be 90 days, a year, or possibly not, but that I wiil keep the payments current. I explain to them that it is in my best interest to do so because my profit comes when I get the people refinanced. I also explain to them because I do this for a living it wouldn’t do me any good for me to walk away. You’ll have to find something to that effect to say, to sale the people on letting you take properties subject to.

Also ran an amortization schedule that’s about right,
62k @ 8.5% for 360 is 476 and some change, add 150-200 bucks or so and your close to 700. And the balance would be around 57k + back payments, attorneys fees etc.

David Alexander

Re: Need Ideas with first deal! Can I say NEWBIE ??? - Posted by Heather

Posted by Heather on April 23, 1999 at 21:16:19:

The owner said that he is sure his mortgage company will work with us… how much chance do you think there really is of that happening?