I have a condo that I’m interested in. The owner owes 105k. The house needs 3k in repairs and the owner would like 2k. The condo is worth around $130k. Not worth it to buy it and then flip (bank fees, closing cost, holding cost, HOA fees etc). But there’s also 15k to 20k just sitting there.
Here what I’m thinking
- Is there a way where I can do an option to buy and then find a buyer at $125? PP would be $125; the net sheet would show 105 going to bank, 2k going to seller, 3k going to new buyer for repairs and 15k going to me for my foreclosure services.
- I could do an assignment for contract but don’t you usually do that when the assignment fee is small (up to 5k).
I’m starting to come across properties with some equity 10k to 20k. After doing numbers it doesn’t make sense to buy it my self because of closing cost, bank fees etc. There’s no problem with me getting the owners to sell low. There’s no problem finding buyers, I just don’t know how to position my self. If I have to, I will just assign the contract for 5k or what ever I can get from the buyer but I would like to know how I can pull out more. If I do assign the contract and don’t get paid until the closing, how do I make sure I get my money? I assume I must put something in the contract. Who notifies me of the closing date?
Thanks