Posted by Ronald * Starr(in No CA) on September 21, 2003 at 07:52:26:
The first property is terribly overpriced. I?d suggest you either do nothing or make an extremely low offer. You should be able to estimate the loan amount by looking at the original recording of the deed of trust or mortgage. If it is greater than the amount you would pay for the property, move on. Value: $165K X .70 is $115K-$50K repair price = $65K. Offer $50K or so.
Second property. Where are you going to make a profit here? Are you buying for long-term rental hold? That is the only thing that makes any sense to me. But, since you do not mention the rental value, it is impossible to make any judgment as to whether it is something to pursue. The fact that the owner will carry a loan is not particularly important. The issue is would that loan have better terms than you could get with an institutional lender? Lower down payment? Maybe zero down? Lower interest rate? Given that the owner is asking full market value and has stated an intention of pulling a credit check, this sounds like a sophisticated investor. I strongly doubt that you will get any kind of attractive deal here. However, you never know until you ask.
Good Investing***********Ron Starr*******************