OK - Time to Analyze these Deals... - Posted by PJ

Posted by PJ on September 21, 2004 at 11:24:05:

Thanks Pat - that’s sort of the kinds of deals I’ve been getting thrown at me for the past week.

Sort of feel like I’m wasting my time, but I know it may take some time to find some deals!


OK - Time to Analyze these Deals… - Posted by PJ

Posted by PJ on September 20, 2004 at 17:49:41:

In the last 10 minutes, I’ve come across these 2 deals and I’d like to throw these out there for you all to comment on how to structure offers, if any at all:

  1. owner has to relocate in 30 days. wants 15k cash.
    Mortage Bal: 125k , $1,100/mo, So, Asking Price = 140k
    Loan current, house built in 98, 4 BR / 3 BA.
    ARV = 165k

  2. elder owner wants to move in with daughter to eliminate
    high payments. Mortage Bal: 105k, 2nd: 42k, total pmt: $1,300/mo. She just wants to Walk away.
    ARV = 160k. 3/2, 8 year old house, no repairs, nice area
    Loan current.

I have been running into a lot of low equity to NO equity situations - and the above are a few examples.

What would you offer to these owners?

How would you construct your offer?

Re: OK - Time to Analyze these Deals… - Posted by John Katitus

Posted by John Katitus on September 21, 2004 at 02:48:04:

Depends on your market. If lease options (or better yet land contracts) sell quickly and there is a sufficient pool of buyers with money, you could sell the first one for 175k with 10k down, 1295/month. I would offer to buy subject to with 5k cash. But only if you’re sure of the values and it will move quick. I would also have the stipulation that the seller make the payment until it sells. The second one is a pass.

Re: OK - Time to Analyze these Deals… - Posted by PBoone

Posted by PBoone on September 21, 2004 at 01:31:49:

A Couple of things need to be considered. What is your average market time for resell? Are the ARV’s based on your comps or the seller? What is the FMV for rental market?
At first glance I would pass, but depending on the scenario and market conditions these could be considered if you have nothing else to do

I think I’ll make that offer… - Posted by PJ

Posted by PJ on September 21, 2004 at 11:28:36:

John - Since I have no other deals in the pot at this time, I think I will go ahead and offer a lease purchase to this owner.

I will, ofcourse, tell him that I will only pay him the 5k cash IF and WHEN I find a tenant buyer to L/O the property.