Can you please give me some advice.
This would be my first deal.
Found a house that’s about 1100 sq feet. 3 Bed 1 bath. 1 car garage
This house is already in preforclosure. To be sold on the steps in two weeks. I got a hold of the owners they are looking for 200K, and could carry the loan for 6 months.
Homes in the neigborhood are listed 230K to 240K similar in size.
Home owner owes 150K, based on county records.
They are behind on the mortgage 6K.
They are involved with another investor. They started dealing with investor X in June. Investor X promissed he will pay the late fees and bring mortgage to date. It did not happend. Futher more he will not return their calls. They have not spoke to him in almost a month.
The homeowners added this guy to the deed. Investor X did not record the new deed. Per county records.
They are interested in dealing with me, but dont know how to get this guy out of the deal, since he has done nothing but messed things up.
Question
What can we do with investor X?
How much should I offer the homeowners $? 200K its to much for this house, its a buyers market, and it only has 1 bath.
Should I put another bathroom in this house to bring the value up?
First got to get the deed recorded in your favor…first one to file should have the rights…after that investor X is out of the picture.
My first offer would be to take over the $150 & back pmts/fees just to clear their name.
If that didn’t work, my second attempt would be for the $150/pmts/fees, try and do a short sale and split the profits with the owner on some preferential ratio…maybe 75/25.
If the owner wanted to stay in the house…then go for the short and lease it back (triple net). Its all a negotiation.
If the owner wanted to stay in the house....then go for the short and lease it back (triple net). Its all a negotiation.
The house is empty. Divorce issue.
As far as the deed, thats what I was thinking.
The investor does have a contract with the home owner, but I have not seen it yet, she said she wants to talk to a lawyer and then call me.The home owner has a sour taste with investors. Investor X is the second one that promised things they did not deliver. So as far as doing a quick sale it may be hard for me at this time, its all about how comfortable you are, and im not there yet.
I was thinking to offer 5-8K to home owner and also bring it out of foreclosure.
Maybe to generous?
The contract from investor X may be a problem…I’ll let the more learned comment on that one.
5-8K??? This just becomes a numbers game. Crunch the numbers! What do you have to do to flip it/rent it? Figure the costs and figure out how much you want to make.
I dont intend to keep this house any longer than have to.
Here is what I have in mind.
225K Retail value.
I want to listed for 210K and possibly settle for 200K
200K - Sale Price
10K estimated settle for home owner
6K for mortgage to date
1500 for paint and update.
3000 for 2 months of mortgage before sale. I want to rent it till it sales
3000.00 for marketing, paperwork.
144K first mortgage
32.500.00 Potencial Profit.“Potential”
Is this realistic? Or am i leaving out some. I want to listed my self.
From everything I have read so far, this would seem like an excellent sub-2 opportunity. I don’t know how much you know about the subject, but you essentially agree to take over the mortagage payments in exchange for the title to the home. Bring the mortgage payments current, give the owners some moving money, and put the property up for sale below fair market value for a quick flip.