I am a newbie. I spoke to a very motovated seller. His house being foreclosed on the 17th of this month. He was in escrow with another person. It fell out of escrow. He had an extension on sale till April 4th. He owes $142,000 on the first, $20,000 on the second. The house is appraised at $450,000. He cant buy the equity split. He is still open to negotiation. Any ideas out there? Please help!!!
what is your financial position?
I have about $20,000 spendable. The guy wanted me to loan him money with high interest but I am kind of scared. He is behind by about $11,000
Put it under contract for as cheap as you can. If it is a good deal, you can flip the contract to a cash investor for a good chunk of money.
If the guy is truly in a pinch, I agree - sit down with him and work out the best deal you can either on assignable contract or close the deal yourself. I wouldn’t loan the money, even high interest you won’t make much on a small amount like that. See if you can buy the property for 250 - 300, his credit is saved and he walks away with enough to start over, and you have 15K+ left over after closing costs if you buy nothing down (buy as owner-occ. you’ll have no problem) to pay monthly payments while you find a buyer. It sounds like you’ve found a great opportunity.
;)Thanks a lot. I will try all the strategies you gave me. Hopefully It will work out. Thanks again.