Anything I can do

Helixpoint · April 25, 2007, 2:39pm

I think I know the answer to this, but I will ask anyhow. I just got a call from a gentelman that has 2 houses and wants to get rid of one. He had it with a real estate agent, but could not sell. He bought it for 140 and owes 135. The comps say 144. Anything I can do? I would like to wholesale it. He said the hose needs no work.

satdog1 · April 25, 2007, 3:46pm

:cool RUN THERE IS NO MONEY HERE

Helixpoint · April 25, 2007, 4:08pm

Then what does someone do in that situation?

Rich_in_CT · April 25, 2007, 4:12pm

If he’s failing to make payments you might be able to shortsale it. You also might be able to lease option it and sublease to a tenant buyer. Can you give us some background on the situation? What is his current PITI? What would your current market bear for this place as a rental?

Helixpoint · April 25, 2007, 4:22pm

I do not have much info to give. Possible shortsale. I would have to ask more info. Never tried one. Might be good experiance. How much trouble would he have to be in for me to convince a LMR to accept? Lease option is a bit beyond me at this point. Not sure what PITI means.

Rich_in_CT · April 25, 2007, 4:25pm

http://www.reiclub.com/real-estate-abbreviations.php

PITI - Principal Interest Taxes Insurance

Helixpoint · April 25, 2007, 4:37pm

So this is not a sub2 candidate?

Rich_in_CT · April 25, 2007, 4:43pm

If you sub2 what’s your exit strategy? You take over the payments, then what?

Helixpoint · April 25, 2007, 4:46pm

I was just curious. I am a wholesaler. Not ready for that yet

Helixpoint · April 25, 2007, 5:03pm

Do they have to be behind in their payments for a shortsale to happen?

Rich_in_CT · April 25, 2007, 5:04pm

If they are making their payments what motivation does the bank have to short the property? I would think it would be HIGHLY unlikely to get a shortsale together if the payments are timely.

ed6759 · May 1, 2007, 12:56am

I think that seeing as the seller owns 2 houses, and wants out of only 1 of them, that there needs to be an underlying reason for the sale. I’ll take a stab and say that your seller is just “Working the Broker” as it were. Basically trying to find out how much he can get for it without hiring a realtor. My advice, unless you can shed alot more light on this one is to tuck tail and run in the opposite direction

terryall · May 1, 2007, 2:34am

If you are looking to wholesale it you are looking at somewhere in the neighborhood of $100-$110 minus cost for repairs minus your profit. In my opinion there isn’t enough built in for that.

Helixpoint · May 1, 2007, 11:11am

Ya. I passed over it. Told him to loose his job and not make his payments for a few months. Just kidding :smile