OK got the deal NOW WHAT? - Posted by Mel Finehout

Posted by Mel on May 08, 2000 at 21:21:21:

Thanks alot! I think I already have an investor to “flip” it to. But if that doesnt happen, I’ll know what to do.

OK got the deal NOW WHAT? - Posted by Mel Finehout

Posted by Mel Finehout on May 07, 2000 at 19:57:07:

A seller called me on my “I buy houses” ad and asked if I Bought HM’s W/land. “Well sometimes” I said “tell me a little about it”. I Found out that it was a 3/2 MH on a small lot, in a decnt MH community. They had one mortgage on it for 10K that they got in Sept., and that they were 5 pmts. ($200 mo.) behind. I also found out that it appraised for 35K when they refinanced. They Were asking 20K. Now, I have never bought a MH, and am still a beginner at RE investing, but I know a motivated seller when I here one. So I went out to talk with them about it. On the way to the sellers house I started thinking that I really should know more about the possible back doors before I made an offer. So I decided that I would just make an offer that was sure to be rejected, just to “soften them up”. My offer was $1000 down and take the home “subject to”. as expexted it was rejected. Not expected, the call at 8AM the next day W/ a $1500 counter. The numbers seemed so good that I went right over and signed the deal up. So I got the deal, NOW WHAT?! Id like to pull some cash out of the deal if possible. Any advise would be very helpfull. THANKS ALOT.
Mel Finehout. St. Petersburg FL

The place has CH/A, and needs only carpet, bug spray, soap and water.

Re: OK got the deal NOW WHAT? - Posted by Ernest Tew

Posted by Ernest Tew on May 08, 2000 at 05:29:50:

If you haven’t already done so, you need to visit the mortgage holder to see if they will accept the five payments that are due. Otherwise, they could still foreclose on the property.

To pull cash out, I would follow two avenues: (1) contact some of the local banks to see if they will lend money on the property, using part of the loan proceeds to pay off the existing mortgage; and (2) take steps to find a buyer who can qualify for financing. Put a “For Sale” sign on the property, run an ad in the local shopper and/or newspaper, distribute flyers etc.

If the mortgage holder goes along with bringing the loan current, you could also sell the home and lot and carry the financing on a “wrap-around” mortgage. The receivable could then be sold at a discount to some private investor.