Yes? or No? - Posted by Jim

Posted by Jim on March 07, 2001 at 12:33:52:


The question is a “Financial Structure” question… NOT a how should I take title question.

I most certainly will use a Land Trust… “as I stated I would”.

I think you have mis-understood the question.


Yes? or No? - Posted by Jim

Posted by Jim on March 07, 2001 at 11:21:02:

Seller has a beautiful house appraised at $200,000.00 and owes a 1st of $187,800.00 and has had it for 1 year. Realistically the loan is still $187,000.00. Seller will be 2 months behind on the first of April

Seller will deed me the house “subject to” the existing 1st mortgage. (There are no other liens)

Now…The interest rate on his 1st is 10.5% and the monthlys including Taxes & Insurance. Payments seem high to me to be able to get from a buyer. They are $2,000.00 per month.

This house is only a year old and in excellent condition (Turn-key property)

Would you do this and if so how would you structure it to be most beneficial to you?



Re: Yes? or No? - Posted by Monique

Posted by Monique on March 07, 2001 at 12:31:35:


Consider buying it with a 30 day option agreement.

If you can find someone with enough to put down, then exercise your option to buy the house. If you don’t find someone, then you haven’t put anything into the hosue. You’ve only spent money on marketing, and you can reuse the buyers list that you create.

Sell it for as much as you can with “Easy Qualifying” Seller Financing, maybe $210k, or even $220k. Find a buyer that has around $20k to put down, and sell it on a Land Contract with an interest rate of 10.75% or higher. Use $4k of the downpayment to make up the 2 months of arrearages. Pocket the difference. Let your buyer know that there will be no prepayment penalty. That is, if they want to refinance in a year or two to get their interest down, they would be welcome do so.


LaVerdi - What’s the deal? - Posted by Gary

Posted by Gary on March 07, 2001 at 12:26:40:

LaVerdi, what’s the deal? I thought you used Land Trust for ALL your properties?

What do you plan to do with this one?


Re: Yes? or No? - Posted by Nate

Posted by Nate on March 07, 2001 at 12:07:00:

To get maximum benefit from this house I would wait until it is foreclosed, and then buy it from the bank after they take it back at the foreclosure sale.


Gary!! "What’s your Deal? - Posted by Jim

Posted by Jim on March 07, 2001 at 12:46:52:

I had just taken a bit of my valuable time to send you an email and your address is “BOGUS”!!

Hey, if you want to correspond with people you need to provide legitimate contact information!

If no one is calling you to give you deals…maybe you ought to provide your real phone number or something!!

Please don’t waste any more of my time.