Suggestions on possible Sub 2 deal - Posted by WaynePa

import · April 2, 2002, 9:35am

Posted by WaynePa on April 02, 2002 at 14:28:09:

Thanks Tim,
I’ll get right on it now.
Wayne

import · April 2, 2002, 9:35am

Posted by WaynePa on April 02, 2002 at 10:35:19:

Hey guys and gals,
Possible Sub 2 deal I would love any input as to if this is possible and how any of you would do it.

Here are the stats:
House comps:$90K-$120K
Seller paid:$95K about a year ago
1st:80k @ 7.875% P&I= 580
2nd:12k @ 10.9% P&I= 182

I was hoping to discount the second for somewhere between 2K and 4K (I know it’s a stretch), and L/O the house out.

Option consideration: 10K
Monthly Rent:$800-$1000
Rent Credit: 25%
Strike Price:$115K-$120K

Am I too far off the mark? Am I missing something?

Thanks in advance,

Wayne

import · April 2, 2002, 11:10am

Re: Suggestions on possible Sub 2 deal - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on April 02, 2002 at 12:10:17:

Number 1: Get the comp price!

That is a huge spread between $90k and $120k. Is it worth $90k, or is it worth $120k? Would it rent for $800, or would it rent for $1,000?

Polish the numbers before you do the deal. If you are going to take over this sub2 with $95k purchase last year, you want to know if it is only worth $90k now, or if it is worth $120k now. Big difference between a profit, or a loss.