I have a seller that is in default 3 months and owes $6K
Seller owes $252K
Comping out at $307K
He wants to sell his house to move to another state.
He currently has a renter in there that pays $2000 a month and his monthly mortgage payment is $1900 PITI.
The owner is very flexible and open to creative financing. I asked him how much he wanted to walk way, he said maybe $307K.
I asked him about Owner Financing or doing Lease option, he said that he would want $20K up front.
What is the best way to tackle this deal?
I would not be interested…the seller wants too much; there is a tenant in the house.
Follow ups:
This makes no sense…
The guy is $6K in arrears, owes $252K which he obviously can’t pay, and would walk away if he could get FULL FAIR MARKET VALUE??
Did you ask him what his credit rating is worth to him? (Rhetorical question - Answer: Not much!)…
Is he smoking bad dog food?
I’d offer him a Sub2 and give him enough for a U-Haul and some moving expenses…maybe $5K.
Additionally, the place is an alligator…mortgage is $1900, rent is $2k -that leaves $100 a month for maintenance, management, vacancy, and your profit…
Keith
I’m with Keith, $5k cash and take over the payments. Even then its a marginal deal. I would only do it if the tenant is month to month (so you can get him out).
It’s only worth getting the tenant out if you can rent at a higher rate. If that’s market rent, then it just doesn’t look good. It’s one of those do it and hope it appreciates type of deals. That works for some people. I’m not sure how much they sleep.
Wow the guy is sinking and trying to fight off the rescuer. You should give him the arrears to let him walk away.
<<Wow the guy is sinking and trying to fight off the rescuer. You should give him the arrears to let him walk away.>>
Ahhhh, the old “Here hold this anchor for me for a minute…” – I love it!
Keith