Need advice on a deal:)

Hey folks,

Need advice on a possible deal.

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”.

What should I offer this guy for the property?



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.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737

512-301-9171 home
512-587-6177 mobile


Great stuff! I think it is too skinny as well.

Appreciate you taking the time to reply:)