Posted by Bud Branstetter on May 03, 1999 at 11:16:14:
On property 1 if she is in foreclosure why are there no arrearages yet but has to be done in 30 days?
Is the lady wanting 8K plus what any other costs are? Or just not want the foreclosure on her record.
The deal…curious to hear Johns take - Posted by Gino L.
Posted by Gino L. on May 02, 1999 at 22:15:08:
Just want to hear others take on this deal.
Im interested to hear feedback and ideas. The way I plan to structure this deal involves over financing with a newly created note and discounting out for cash. Want to know what others would do to solve this ladies problem.
the deal:
Lady in forclosure on 2 properties…
both properties are in marginal areas with large rental market. both need cleanup only to a heavy extent (2 truckloads from each).
1st prop 77k 1st, FMV is 95k…must sell in 30 days…no arrears yet. The question is how to get in and out with no money! Non assumable.
2nd prop 72k 1st, 5k 2nd, 8k in arrears, forcloses in 20 days. FMV 110k
Same owner. This lady is willing to carry as much as needed and has no cash reserves and needs to come up with at least 8k total out of both properties combined…=:) Will not sign a exclusive option because of time restraints.
Interested to hear any and all creative techniques from people heavy into L/O’s and Trusts. Also any ideas on combining l/o w/notes, and trusts to assume.
The object is to do this deal with absolutely none of our own cash!
Easy enough… - Posted by Sean
Posted by Sean on May 03, 1999 at 11:44:03:
On the first one, just have the lady sell to you on a land contract with payments equal to her mortgage amount.
The second one is tougher because you need to generate cash, but you can create a $16,000 note at 9% with payments of $245.12/mo and sell it for at least $11,000 and if your FMV figures are right it won’t pass the 80% LTV mark on the second property.
My thought is to have both the first and the second paid by the lady and wrapped in a land contract paid by you, but I’m a little fuzzy about how exactly to accomplish that and still have it considered a note being sold and not a loan.
I think if John Behle was going to do this deal he would first try to contact the banks to see if they would sell those loans-in-foreclosure at a discount. It’s tough to do that no money down, though.