Posted by Marlon on January 18, 2001 at 07:58:21:
I thought of getting a hard money loan at first but she later told me she needed to get at least 50k cash out of it because she has to pay it to the bankruptcy courts I think. I’ll talk to her later today to make sure.
Seller in bankruptcy - Posted by Marlon(OH)
Posted by Marlon(OH) on January 16, 2001 at 21:39:04:
A seller contacted me through my website about her house. The thing is she lives 2 hrs away but I have family near her who will help me out. She owes about 60k and she had it recently appraised at 150k. She going through a bankruptcy and says she needs to get 50k out of it for the bankruptcy. So, she says she has to sell for a least 110k.
Is there any way to do this one?
Thanks in advance.
Marlon
Re: Seller in bankruptcy - Posted by John P S.FL
Posted by John P S.FL on January 18, 2001 at 23:29:29:
Marlon,
What type of bankruptcy is the women in 13 or 7? Chapter 13 will allow her to reorganize her debt. You would need a letter from the court allowing her to sell the property. Do not do anything with out the letter. I would then put it under contract and give yourself some time to close, my contracts have an extension built into them with a fee that goes to the seller at the time of closing.Then sell it to an end user cheap, oh lets say for $125,000.00 not bad for signing some papers and running some ad’s. Hopefully it does not need any repairs?
JohnP S.FL
Re: Seller in bankruptcy - Posted by Mark-NC
Posted by Mark-NC on January 17, 2001 at 08:20:43:
Marlon,
Depending on what stage she is in in the bankruptcy she may not even be able to sell it to you at that price or even at all without the courts permission.They are going to look at it as money to pay debt. You need to check with her BK attorney before you can do anything.
Mark
Re: Seller in bankruptcy - Posted by Rick(CA)
Posted by Rick(CA) on January 17, 2001 at 02:18:11:
Marlon,
I’m not sure what your real question is. Assuming for a moment that her appraisal is correct, and your numbers are the ones you meant to type…
You’re looking at someone who want’s to sell you her house for $110k and it’s value is $150k… that’s 40k in equity! Are you worried that this deal is too skinny or something? I’m really confused, so please don’t take this as criticism.
Have your family check it out. Get the address and run a comp check yourself, then get it under contract. Get creative and work it out with her.
Re: Seller in bankruptcy - Posted by Kevin Subbert
Posted by Kevin Subbert on January 17, 2001 at 23:52:49:
I think he wants to buy the house without having to come up with $50000 right away.
Re: Seller in bankruptcy - Posted by Rick(CA)
Posted by Rick(CA) on January 18, 2001 at 01:09:08:
So what he does is get a hard money loan for 65% of value 97,500 and have the seller take back a second for the difference due in say 1-3 years. Retail to a buyer for 10% down (15k) and pocket the 2500 difference.
Personally, I would lease option it. You can make even more money on it. Or, flip it to another investor immediately and still make good money on it.
The third option is to get a investment partner for this deal and split the profit.
Just my 2 cents