Re: Tell me how RW - Posted by Stu Silver
Posted by Stu Silver on March 06, 2001 at 12:52:38:
As an investor, trainer (lead instructor at Russ Whitney’s Millionaire U Boot Camp), and auctioneer, I have experienced similar siutations. One spouse is motivated seller and wants to get off the mortgage - other spouse in no hurry and wants every last penny (especially true if unmotivated spouse is still living in the house). By the way, I have seen this situation with either spouse still living in the house, but it is more common for wife to remain, with the kids, if any.
Keep in mind, if 110K is still owed, that that is probably your bottom line on buying it. Most people don’t want to pay to sell.
You say comps are 125-140K, and it appears like it is listed at 140K now, but will be reduced next week to 125.
Therefore, it seems the most profit there is in this deal is 15k - closing costs, and holding costs could eat most of that up, so be careful! It sounds like you want to volunteer help, but not money.
Probably the best thing to do, with the least risk to you, is a sandwich lease/option.
You get a lease/option from wife at $110K, with a payment that will break even each month. Then you turn around and lease/option the house to someone else, at a slightly higher payment, at a price of $125 - $140K.
I would put an inspection period of 30 days into the deal, and advertise the house for lease option during that time. If you get lots of takers, you’re on the right track. If only a few call up, and none are seriously interested, exercise your inspection contingency and walk.
In this case, you have to deal with wife. She is in sole ownership. If you make an offer that hubby wants to accept, but wife doesn’t, all the hubby can do is apply to the court and try to force the wife to take your offer.
Hope this helps,
Stu Silver, CCIM
Registered Real Estate Appraiser
Licensed Real Estate Broker
Licensed Mortage Broker
Certified Exchange Consultant
Instructor at WIN