I have a homeowner who finally has a fixed rate loan on the property of 5.25% and called me to purchase their home… she states her motivation in selling is seperation. The husband has taken a walk and is not on the deed. In asking all the required questions she dosent want to get stuck with the house and have to make the low 825.00 per mo payment. The remaining balance is like 100K. With the market tanking and so many REO’s on the market its tough to sell quickly even at a 30K dollar discount.
so let say she owes 100K and said to me she would take 140-135K but its listed with a jerk realtor( who ive encountered before) - I have an interested party who contacted me for a L/O with 3500 dwn and approx 12-1300 per mo. ideal payment. its not really enuf dwn cuz i usually require 5K dwn minimum…
What is the REIclub members opinion as to how to structure this deal ideally not using an of my credit and avoiding as much risk as possible. I have been tossing around the ideas of… getting the deed, sub-to, split funding, land contract, L/O with right to sub lease, or worse case an option agreement…
also I thought of equity share agreement, or assignment of L/O contract.
The prop. is listed with a realtor for 2 months starting at 180K and now lowered to 150K - I need to get around this or make it work…
Please give me your input on how to best structure this deal…
Comps are on Zillow for 219K - seems like market value is somewhere between 140K -180K( 30 -45 day sales price / 180 = 6-12 mo sales price…
What is the best way to submit multiple offers for her to pick from…
Well, instead of me throwing numbers for an offer take a look at it this way:
Who cares what the seller wants.
Market value of 140-180K is a huge spread. Need to get real with numbers.
But based on your info and 140K is value I would make a no money down offer of 95K subject to.
What do you want to make?
How much can the property afford to pay as an investment?
What are your resources?
Well because the prop is on mls for 150 i probably will have trouble getting any more then this from my L/O buyer…
so lets say 150K…
Of course id like to make at least 20-25k or more if possible…
How much can the property afford to pay…? I dont understand this question…?
I could get like 1200 mo - 1300 mo for it i would say…
I am using mls sold comps - but looking at this one the assessed value by city is like 220K
Zillow had it at 219K but in a good normal market the prop would sell for say 165-175, but what ias happening is there are so many props that are REO and the market is saturated with bank owned properties who the bank is dropping 50K just to move so all these folks are ting to compete with the abundance of REO homes making it a hard sell…
Id like to structure a few offers to choose from…
I prefer owner financing either with Land Contract or L/O for 12 mo…
We could do all cash and get a loan but then we are responsible for mortgage and qualifing , which isnt a prob…
The prop is dwn to 150K from orig. $ of 180k - there is a divorce at hand and both are hoping to be able to get some $$ to split - they would probably frown on any offer of 100K - cuz they have a lien of like 550, conveyance taxes, and tring to get around realtor commissions of 4%…
How would you structure this one… and what kind of multiple offers would you make…