how should I structure an offer

  1. motivated seller
    2, house value 195,000. after repairs 230,000.
  2. repairs needed: central heating system to be put in,wall tiles ,new bathroom basin,floor tiles, cabinets need to be refurbished.
  3. repairs to take 3-4 weeks.
    should I offer a lease option and find tenants. seller wants to close ASAP.
    put house on contract for 235,000 and find buyer or tenants.
    In terms of finding finaacning what should be my best way to go
  4. hard money lenders since property needs repair or construction loan? your recomnedstion and opinions will be greatly appreciated. thanks. Marc

Just a few questions need to be answered to help you.

  1. What is the loan balance if any?
  2. How much is repair estimate?
  3. How much cash do you have to risk on this deal?
  4. How is the market wherever you are located/
  5. What are your plans for the property? You have to keep in mind that is you get a short term hard money lender they want to be paid back within a year. Having a tenant/buyer close into a loan that quickly after 12 months is cutting it close. The financing dictates the type buyer. Some conventional lenders will include some fix up in the loan and escrow the money until the repairs are complete or the seller can repair prior to closing. There are many ways to do deals like this but more info is needed.

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile

PS Did you mean buy from seller for $235,000 or sell to tenant/buyer for $235,000.

  1. I really don’t have any $$$ I can sink in.
  2. the repairs would be 3000-5000 thats probably the low end
  3. it needs a central heating system but I don’t know how much that would be. thats the major repair.
  4. I don’t know what the existing moergage is.
  5. he is asking 235,000. and when repairs are completed , the house could go for 275,000.
  6. if I do put the house on contract , I would then have to repair
    the house, and then rent it out but that would be more time and $$$ for me.
  7. i don’t know of any No $$$ down techniques , if I ask for a lease option, I would sublease but the repairs would take time for someone to just get into the house b/c of the repairs needed.
    any other thoughts on what I can offer the owner. thanks.,Ted

I think I read you are from Califorina where property is selling at really high prices and quickly from what I have been told. This is an expensive property to me with payments of $2500 per month. With no money and a not so great a deal I would not try to do this deal. There is no meat on the bone so to speak. Avter repairs and a new AC system you will owe $245,000 on a property worth $275,000 not to mention the costs to buy the property which will be several thousand. If you could make the payments until you sell it may cost at least $10,000. Closing costs to sell and commissions and you will be lucky to break even. Your best bet is to find a person that wants the house as is and pre sell it to them for a small profit. This is called a flip. You may even want to get it under contract with earnest money but make sure that you have several outs and a long closing time. I would not even mess with it except the market there is a sellers market

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile