Newbie is calling all creative minds! - Posted by Jack Z.

Posted by Bud Branstetter on June 20, 1999 at 03:30:41:

My mind isn’t too creative at the moment as the obvious answer is the greater fool theory. Some one else will have to be willing to give you or her the 6K as they buy for 50K. The scenario is not likely but neither should you be giving her cash unless there is some greater profit easily forseeable. If you are going to invest money you need to be up on what it will sell for so you can make the profit going in.

Newbie is calling all creative minds! - Posted by Jack Z.

Posted by Jack Z. on June 16, 1999 at 20:33:44:

Dear Creative Mind,

Here’s the deal: a lady called on my ad in the paper. She’s got a condo for which she paid $45k, and a mortgage balance of app. $41.5k, with monthly payments of $406. It’s a 2/2 condo. Anyway, she declared herself “desperate”, though she won’t be leaving the place until September. She said she has a pending lawsuit, for which she said she “needs” $6k cash, to pay off the lawyer and keep the suit rolling. However, she expressed interest in a lease/purchase, even as I actually downplayed it because she’ll be leaving the area and like a friendly jerk, I suggested that maybe she wouldn’t want to do that because she’d still have the place to worry about if I never found a suitable buyer. Her response was then, “As long as the payment is made …”

One option I can think of is lease/purchase, with about a buck for option consideration, $410 (or maybe a tad more) monthly payment, and a strike price of $45k. That should be easily sellable on rent-to-own to a tenant buyer for $700+ a month and a strike price of $50,000. But I’m not too up on the condo market.

Here’s where I really need the input: how could I give her the $6k cash? My wheels are turning, but mostly spinning. I have thoughts of creating a wrap, and selling off some of it to a note buyer for the cash, and then making payments to her for the rest. It seems she’d be pretty delirious if I could do that. But my mind is cloudy, and I haven’t figured out exactly how to do it. So, while I try to figure it out, I thought I might humbly ask for help, because the creative minds I’ve seen here are better than mine (but hopefully not for long :wink: )

And if I’ve neglected to get certain important info, fill me in. I’m new at this game; I could use the advice.

Thank you for your time.


Jack Z.