Here is a deal that I not interested in but would like to make a finders fee and pass it on to someone else.
I send out letters to property owners that are delinquent in paying the county property taxes. I offer them cash for their properties instead of them losing them at auction.
This man named Christian read one of my letters and called me yesterday asking if I was interested in buying a loan from him. He personally financed a second mortgage to a buyer for 150,000 with no interest. The property was sold for a total of 450,000 in 2006. The buyer has already paid some of the loan off and has about 136,000 remaining on the second mortgage. Christian the seller wants someone to cash him out of the second mortgage. Now here is the kicker the property value might not be worth 450,000 anymore. The tax value is around 250,000. This Christian fellow happens to owe a lot of taxes on his other properties and is in a cash crunch.
Where is the Deal here?
:banghead :argue :cool :shocked :deal :beer
Pull some comps. for the area that the home is around, here in Michigan the taxable value is half of the market value.
So there might be more value to the property than you think.
He still owns that 2nd, with a balance of $136k?
I’d offer WAAAAAY less than the balance remaining.
…meaning buy it myself @ a discount.
Then I’d be introducing the buyer/occupant to my mortgage
broker for a refi.
It would more than likely be cheaper for him/her to do so.
Maybe even “bribe” them…tell them that you’re now the
owner of that 2nd they’re paying on and that you’ll discount it
to _________ (more than what you paid for it)
You’d catch the windfall profits.
Then again, I’m wondering about these:
- what’s the FMV of the house now?
- how big of a cash cruch is “Christian” in?
- was this 2nd properly documented and recorded? – is it legit?
I’m not sure what the FMV of the property is considering it is a commercial prop.
He has to pay at least 27k in back taxes on another one of his properties.
Yes the second is completely legit. I have seen the paperwork.
Private message me if your interested :beer