Posted by jersey pat on October 28, 2003 at 09:41:15:
DK
The seller already tried refinancing. She got denied, terrible credit. Any other suggestions? Thanks
Need Urgent Help with Condo Deal! - Posted by Jersey Pat
Posted by Jersey Pat on October 27, 2003 at 19:46:14:
Can someone please help with my first deal on a condo?
The seller wants out and is willing to go subject-to.
Value of condo: 145,000
Mortgage Bal: 90,000 12 3/4% 30 years, $900.00/month
Seller wants: 20,000
Repairs: 3,000
What’s the best strategy for a newbie with little money?
Re: Need Urgent Help with Condo Deal! - Posted by Brent_IL
Posted by Brent_IL on October 28, 2003 at 19:34:13:
Condos aren’t really my thing, so if the $145K figure is true, I’d option it at $17,000 ($20,000 - $3,000 repairs) plus the balance of the first. I use a $2 bill as cash consideration, just to be memorable.
Then I’d look for a cash buyer. If you get an adequate option term, you can offer to make the improvements if you request that right in your option contract.
In Illinois, it doesn?t take much to be a general contractor. If your area has similar rules, with the owner’s consent, you could hire a newly-formed corporation to do the repairs. That company would sub-contract out the repairs and place a mechanic?s lien on the property for whatever. You are protected from repair losses if you can?t sell, and the fixed-up property will be easier to sell at retail. If you have to foreclose on the lien, you get the house for $90,000 + repairs. Don?t let her get behind on the payments.
Re: Need Urgent Help with Condo Deal! - Posted by David G.
Posted by David G. on October 28, 2003 at 15:43:30:
You can try offering 5K down from the DP from your buyer and $15K after your buyer refinances.
David G.
Re: Need Urgent Help with Condo Deal! - Posted by dk
Posted by dk on October 27, 2003 at 23:09:34:
only one solution as I see it. Have the seller REFINANCE the condo. It gets him his money plus lowers that ungodly interest rate. Then you take over his new loan subject to