A freind of mine took advantage of this last real estate boom by purchasing many different homes, keeping them for six months or so, and selling them. He made a lot of money, but now as I expected, he is now stuck with several homes that he is having trouble getting rid of.
He is now talking with another investor that claims that he can find people that will pay his monthly payments in full with an option to purchase in one year. This sounds weird to me so I wanted to get another opinion.
For example: (His worst situation)
Value = $415,000
Loan Balance = $406,000
Payments = $3,000 / Month
The investor he’s talking to says they can find someone to purhcase with a lease option and pay the payments in full ($3,000/month)
Does this sound right with such high payments and very little equity?