Investor from here in Bloomington, IN owns a house that he acquired subject-to approximately 3 months ago. Investor is now moving out of area and wants to get rid of property.
Loan is $130,000 @ 8%. Appraised value is $140,000. Payment is $900 per month. There is also a 1% pre-payment penalty on the $130,000 loan ($1,300). The investor has had the property for 3 months and has been unbale to fill it. He has been asking $5,000 option consideration up front, $1,095 lease payment, and $149,900 price.
He wants to assign me the beneficial interest in the trust that the property is in for “a few thousand dollars”.
Your market sounds as slow as ours is at the present time. Personally I would not even do the deal. I do like the leverage however. I would lowball the guy at 500 bucks and take over the $130,000 loan balance. If you can find a T/B for even $1000 to $1500 down take it and hopefully they will be able to cash it out at $149,000 in a few years. Too many better deals out there to get excited about this one too much. Top dollar would be $1000 down and that is being generious if the place is in perfect condition.
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737