Let me first say this is an awesome site…I’m just starting a Lease Purchase business, but now I’m diving head first into the entire process…flipping, sub2 etc
My question is my dad’s house has been on the market for awhile and they finally got a buyer whose credit failed. He’s got ~ $60Kequity in the house. I said lets do a L/O on it and he said no, I just want my money. He’s retired and in a RV.
Priced at 149.5K had a contract for149.5 w/ genisis program, ie they give buyer 3% towards the purchase as downpmt. If he wants 40K and to be free and clear what strategy could be applied? His per sq. ft price ~$65 other homes in area in the 70’s, plus his home is in good shape, just a smaller backyard.
Sounds like a weak buyer with no money or credit. You would want a little bit better l/o buyer if possible with one or the other. Times are tought in a lot of markets and sometimes anyone is better than no one. Can you dad make the mortgage payments while he waits for a new buyer without difficulity? A wholesale buyer who would just turn around and resale it would discount the price 30% to yield a sales price of $100,000 to $110,000 which is probably not enough to make your dad happy. Maybe a little off the sales price would help sell it faster. Figure the bottom dollar and lower it some the help sell retail.
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
Another way to help a house move that has been on the market awhile is to add an agent bonus. The bigger the better. I had a ton of trouble moving my last rehab, and finally upped the BTSA to 3K and had a contract very shortly after, due to close this friday (YAY!!!)
Agents have to split their commision with their broker, but from what I understand the bonus is fully theirs.
After having this big bonus, the buyers wanted more than I could feasibly give, so the agent cut her bonus in half to meet the buyers demands on a few things. (They were her family) She still made her commision, 1.5K Bonus, and I am selling a hard to sell house.
j, another way would be to sell on a realestate contract, and then sell the contract at a discount to a paper buyer. This can all be done in one closing. The thing to do is contact discount buyers and shop out the best deal. I have done this once with success. Your dad will get his cash at closing. I have the name of a broker that helped me thru the process. I would be happy to give you her name.