Trading Properties need Suggestions - Posted by Michael
Posted by Michael on November 24, 2000 at 24:36:44:
Some of you already know that I am a Builder. Here’s the scenario. I’ve got two clients interested in building new homes, both are anxious, but need to sell their homes first.
Client number one has a home worth $130,000 owe $70,000. The plus is they don’t think it’s worth that much, but the land was a gift to them, so all they paid for is the house, plus they have added on to the house. They live next to the husbands father who is trying to run their lives and they want out. What I need to figure out is,
- The best way to free up there credit to get a new mortgage
- Buy their property in a subject to or lease option, or some other type of creative financing
They would be tenants throughout the construction of their new home. They would need about $25,000 from their current home to buy the new home.
$70,000 + $25,000 = $95,000 Buy
$130,000 - $95,000 = $35,000 Net Sell (Potential)
Plus $18,000 Profit on their new home.
Total Potential $53,000, I could settle for $30,000.
Please help me structure this deal in a way that would allow them to get new loan. Please advise me on which course if applicable would have all the documents I would need.
Client number 2 is similar, but client’s current residence is 2 hours away, and not the client is not as motivated.
Thanks in advance for all of your suggestions and advice.