If you were broke like me what would you do with this deal?

General Real Estate Investing
1

Value = $350-375K, asking $350K but negotiable
Owes only $150K
Payments $1,400 (current)
Unlisted
Very good condition
Owner highly motivated, will consider owner financing
Owner will probably want some type of down payment, $5-10K perhaps

I would love to just get the deed but I don’t have the money, nor any private lenders lined up. There’s got to still be a deal here though. What would you do?

2

Wholesaling, birddoging and broke go hand and hand. So does Subject To if you negotiate no down payment.

3

I think I have a good shot at negotiating a no-down situation. The sellers don’t appear to be hard up for money.

What would you offer and on what terms?

4

Birddogging can be done with no cash. What you can not afford is to take ownership of the property. With no cash you can’t pay the mortgage, pay the utilities, keep up with the maintenance, perhaps pay marketing expenses while you are trying to sell the property.

A pre-sold contract asssignment is your best exit strategy if you get the property under contract.

5

I totally agree with you about not taking ownership.

I like that idea about an assignment. I could market it to investors AND homebuyers.

6

I would not try sub2 deals without some cash reserves unless you can quickly flip it to a sub2 investor.

7

Or you do a Sub2 lease option.

8

Well I locked it in tonight. :bigthumbup Signed up a seller financing purchase agreement for $350K. They need an undetermined amount of cash at closing to put down on their next home so I told them I’ll attempt to arrange for a note-buyer to buy the necessary amount of payments from them at closing so they can walk away with a lump of cash. Should be a piece of cake.

Here’s my proposed exit strategy: Jack the price up to $370K and market the house for sale with “Owner Financing / Seller Will Carry” etc (handwritten bandit signs, vFlyer, Craigslist, etc). Find a homebuyer who has decent income and $25K+ to put down, assign the deal less closing/settlement costs, and then take a much-needed vacation to the Dominican Republic.

Thoughts?

9

Have you succeeded?

10

Just signed it up yesterday. I’ll keep you posted on the progress. :beer

11

OK here’s the deal: I want to clear $20K…it’s under contract for $350k and I think it can easily go for $370+ especially since I’m offering 100% seller financing with no balloon.

So I should market it at $370k, add in the estimated settlement costs on top of that, and tell prospective buyers that they need that amount in funds to close?

I’m assuming I’ll need to wait til settlement to get paid because I can’t imagine a homeowner writing me a $20K assignment fee check without leaving with the deed & keys. Am I right? In which case I should get the homeowner to sign an addendum so there are no misunderstandings.

How much earnest money should I get from the prospective buyer?

Thanks guys

12

I’m going for $28K with buyer paying closing. Check the ad: http://nsu1997.vflyer.com/home/flyer/home/1864565

Feedback welcome.

I’ll get the sellers to sign an addendum when I figure exactly what I’ll end up netting at settlement. I figure no use in them signing it now, I don’t even know for sure if I can get that much or not. For a house in this location in this condition I think I can get it. Talked to a Realtor the other day, he told me there’s hardly ANY inventory for SFRs within an 8 mile radius of this house.