Re: opinion(s) on this Foreclosure… - Posted by B.L.Renfrow
Posted by B.L.Renfrow on June 29, 2001 at 20:23:11:
I don’t see much of a deal here.
First, do you have, or can you get in short order, the $7466 needed to stop the foreclosure sale?
Second, do you have occasion to be in the Southwest, in the city where this home is located, frequently? As in, monthly?
If the answer to either of these questions is no, you don’t have a reasonable chance of doing anything with this.
You have a property encumbered up to about 86% of its value…and that’s assuming that appraised amount actually IS FMV. That doesn’t leave enough room for a retail flip.
And don’t EVER consider doing something like this with a lease option! Go back a few weeks and find a post from a now-wiser investor who didn’t follow the advice here on this topic. If you’re talking about putting nearly $8k into a deal, with sellers who are in financial trouble, the only logical way to do it is to GET THE DEED…subject-to the existing mortgage.
Now, if you DO have the money to bring the loan current PLUS cover holding costs, and if you ARE in the area frequently, it MIGHT be an OK deal. You could sell on a land contract and reasonably expect to get 10% down from a buyer, plus monthly cash flow, plus a back-end profit. If the property now is truly worth $103k, you might sell on a land contract for something like $110k.
It would not be a reasonable idea to try to do a deal like this from several states away. If that’s the case, your best bet is to offer to give/assign it to an investor located where the property is located.