How do you guys approach this deal if the property has 0 equity? Or do you guys walk away?
Walk away unless his behind on payments where as you may be able to get the lender to discount the mortgage or if there are alot of morgages/liens which you may be able to get released. A small second behind a big first can almost always get easily released off the property for small price.
Hi there,
Sometimes buyers are looking for terms instead of rent credits, prices, etc.
If there is no equity there. You could work a way around it.
Raise the price: If the home is worth $100k, raise it to $105k. Sell the contract for $5K and your out of the deal.
Consult: Instead of getting involved in the deal, consult the seller on how to do it himself. Consult him for $500 dolllars, sit down for a cup of coffee, teach him how to do it himself and go to the bank with $500. Consultations generate me a 6 figure income alone!
Time: Try to get a 4 year lease and then find a buyer who is looking for time instead of rent credit. Sell him the contract.
I had a buyer who filed bankruptcy and sold him a contract for $6,500 on a home that didnt have enough spread for me to make money. He was happy because he moved to a wonderful home in a good school district and he had 5 years to purchase the home for the balance of the mortgage.
To your success,
Diana Fontanez
How would you know if a property have equity in it or not?
Fair Market Value: $100k
Loan: $100k
= No equity!
When there is no equity in a property and I am using the Lease Purchase Alternative, I do a Cooperative Agreement. Raise the price 5% and collect a assignment fee.
To your success,
Diana Fontanez
Lease Purchase Specialist and Consultant