4 close situation. Info I have so far: This is my first deal and I’m so nervous can’t tell between regular nerves or bad deal “rip off” nerves.
House apprraise: 450K
Payoff amt: 340K
My proposed offer 360K
Comps ARV 3 sold 1) 450K 2) 455K 3) 420K
This property was on Market for 386K no luck, needs work
Plan to do LO.
Deed is held by HO and 4close conultant (quitclaim)
Tenant is in home, (not Home Owner) willing to do Lease Option also has begun work inside
Deal came by way of 4close consultant (deal in MD SB 761 territory)
What should I be aware of? What should I be looking out for? How do I limit my risk.
I do not yet have Good Faith, or purchase aggreement, expecting that later today
Couple things to think about, if you are a newbie, like I am and the tenant, the the HO wants to stay in the property. That is might be ok. Trying to do a lease option with HO directly leads to a lot of bad consequences. I can let others speak for letting the homeowner stay in their home. You dont need good faith. only the minimun for considertation for the contract. Here in florida, the minimum is 10 dollars. And you can place that into escrow as well. Dont let the tenant do any improvements. You want to show the bank why they should take less than what is owed, even if it has equity. The appraial doesnt matter unless the bank went ahead and did the bpo. And even if they did, ask for interior bpo which will show them why. Shortsale mkike and others can explain further.
Thanks for the info. Not really prepared to to Short sale, as recommended by kikieder69.
I want to buy this 4 closure and lease option it. But this would be my first deal. I am wanting to know what things to look out for when doing a LO, and if the numbers mentioned look right? Thanks to both for your time to reply.