Posted by JoeKaiser on February 24, 1999 at 22:23:10:
A lease option, a discounted note and a double escrow. It’s hard enough to pull off one of those things. Getting all three to line up is just too much to hope for. Plus, every hoop along the way costs you money. Discounts and double closes aren’t free.
You need to establish the shortest path between you and the dough, and that means you elimate as many of the hoops from your strategy as you possibly can.
Far far easier to tie one up, tidy it up and move it to someone for a quick $5 or $10k, don’t you think?
What do you think about this idea… - Posted by Robert(AL)
Posted by Robert(AL) on February 24, 1999 at 21:43:50:
I read Joe Kaiser’s post last night regarding “The Prehab” and I came up with the following idea. Please let me know what you think, I am a newbie trying to find a niche.
I would like to offer an owner of a distressed property a lease/option in order to gain control of the property. After aquiring control, give the property Joe’s “prehab” treatment and begin to offer it for sale as a “handyman’s special” with owner financing. When a suitable buyer is found, I would exercise my option to purchase and close with a simultaneous closing. To come up with the necessary cash to close my end of the deal with the seller, I would need to sell a discounted note to a note buyer. This is where I could use some help. How do I find a note buyer and how does the process of selling a note usually proceed?
This seems like a definite win-win situation for all involved if it is feasable, the seller gets rid of a burden, the buyer gets a house that he could immediately build some sweat equity into, and I could make a handsome profit.
Another problem you will have is from the appraiser. On a simultaneous close most will want the appraiser to do an interior inspection. You see they have been burnt by the storefront look fraud in the past.