Posted by David G. on October 23, 2003 at 16:53:52:
Most of my deals are via CFD. The reason being is that its considered a sale so I can ask for 10% downpayment.
It takes me an average of 3 weeks to get someone in a home. Of course that varies depending on YOUR market.
David G.
NO Equity - - SUB 2 ?? Danger or NOT - Posted by Littleguru
Posted by Littleguru on October 22, 2003 at 13:29:29:
I know some seasoned investors think its suicide to get involved with deals like this but i know some of you do them all them time.
I’m still looking for my first deal and wondering what anyone thinks.
Young Guy wants out ASAP
Brand New House - - No Grass Lived in for 3 mths
3bed 2bath 2100 sq.ft. brick Upper Middle Class
Paid 260 Owes 255 IR 6.25 PMI .5 PI 1650$ Taxes& Insurance ?? He says taxes and insurance aren’t escrowed? How can this be? My Estimate 1900-2000 PITI
My question is would anyone get involved with this SUB2. What if he made payments til i find a T/B. oR GAVE ME 10K.
What are his other options if he wants to sell now? Pay 20k at closing with realtor. Their stIll building why would any retail buyer buy his house when they can buy a brand new one. Except if he offered terms like i will.
I’m supposed to meet with him, should i just MEET for experience or should i propose an offer to him.
Sell on L/O or CFD. Either way it should sell to someone who can afford the payment but can’t get financed as of today. I don’t know easy it will be since i’ve never done it befor.
Thaks for any Response
pass on it. - Posted by gerald(tx)
Posted by gerald(tx) on October 22, 2003 at 16:23:10:
You can buy these any day of the week, if you want to pay retail. But why pay retail when there are so many wholesale bargains with $20k+ equity already built in?
Plus, are you in a high dollar area? Pricey homes will not move as fast, and you could wind up feeding this thing for months til you turn it over. This is not the model you want for your first deal, I assure you!
Re: NO Equity - - SUB 2 ?? Danger or NOT - Posted by David G.
Posted by David G. on October 22, 2003 at 16:20:08:
You also need to know how much behind is he.
In this case, you can still do the deal even though theres no equity. HOW? Sell via CFD 10% higher of the appraisal. Ask for a 5-10% Downpayment from a buyer needing owner financing. Make a balloon payment within 2 yrs at a higher interest rate than what it is with the bank.
When you sign the contract to take over his loan, place a clause that states that you will not make any payments until you get a buyer.
I have done over 25 subject 2 deals in my first 2 yrs of investing.
David G.
Re: NO Equity - - SUB 2 ?? Danger or NOT - Posted by Drew
Posted by Drew on October 22, 2003 at 22:56:19:
Do you sell all of them on CFD? What is your typical time to get a buyer in the house and what is your average down you recieve?
Re: NO Equity - - SUB 2 ?? Danger or NOT - Posted by David G.
Posted by David G. on October 23, 2003 at 16:54:27:
Most of my deals are via CFD. The reason being is that its considered a sale so I can ask for 10% downpayment.
It takes me an average of 3 weeks to get someone in a home. Of course that varies depending on YOUR market.
David G.