Posted by Nick on December 09, 1999 at 21:16:32:
If he can finance it for 95% of value as a vet, ask him to refinance. Based on an appraisal of $71k, that should bring $67,950, minus costs, which shouldn’t be that much. Then, since $44k + $18k = $62k, you two could arm wrestle each other for the remaining $5,950.
What Direction would you go with ths one? - Posted by TC
Posted by TC on December 09, 1999 at 16:56:03:
Had a call from a man that is ready to retire. The property is in a appreciating area and is a 3/2/garage conversion.He recently refi’ed with VA @ 8%.The piti is 556.80 and the principal is 44k.
I asked what he thought the property was worth and he says he just got a new appraisal in the mail @71k(tax appraisal). Question : Well how much cash do you need if you sold tommorow?Answer:15-18k.Says he has put over 70k into property in the last 10 years and that it needs no work.Homes on the same street and with the same square footage have sold in the last 3 months for 83-85k.
My question is what would be a good approach to capitalize on this without putting any money into the deal?
Any thoughts are greatly appreciated!Thanks!
Heres an option - Posted by Michael Morrongiello American Note
Posted by Michael Morrongiello American Note on December 09, 1999 at 23:22:57:
If the #'s presented are accurate and you feel there is some motivation here with this seller. Go ahead and Option that home NOW for the $15K in cash he wants above and beyond his $44K owed. Put $1K +/- at risk.
Then market the dickens out of that home by advertsing it for sale where OWNER WILL FINANCE.
$9k down, $676.91 per month.
Running an ad like this will draw attention to this property. Filter and screen the calls to locate a suitable buyer who has $9K +/- in cash to put down and who has reasonably strong credit and employment stability.
Agree to sell to them the home for $83K and have them put down their $9K leaving a $74K balance that you will owner finance for them. That note if propertly structured can then be converted into immediate cash (ball park $65,000.00 +/- ). From these cash proceeds you excercise your option and pay the seller his $59K ($44K VA loan + the $15K he wants). The overage of approx. $7K is yours for working with a creative note funder that will assist you in making this deal happen.
Michael Morrongiello
Operations Manager