I have a deal under way that I need some advice as how to structure it. Couple wants to sell there house because they can’t pay the payments anymore. The house appraised for 535,000 they owe 439,900 but are asking 510,000 some home in the sub division are selling for at least 650,000 the appraiseal was six months ago I believe. please help on what I should do???
You should find out. Would they consider letting you take over payments?
but I can't afford those high monthly payments, and they need money to move into a condo and survive until she finds another job
I agree with that.
I do not like to deal with people that want a profit for cracking under the pressure. Only responsible people should be rewarded with profit, not irresponsible ones.
Look, lets keep this real simple. You would approach this just like any other investment opportunity. It either works or it doesn’t. I didn’t gather from your info that they were behind, only that they are highly motivated. I am curious to know if they payed 535000 six months ago. If they did, it’s certainly reasonable for them to ask for $510000. That aside, doesn’t your decision to buy come down to the math? Offer price= 535000 x 70% less cost to repair. If you find reasonable evidence that the home is worth more, plug the new value in. If value is less than 628000 walk away. Even if you could do this deal “subject to” I would only consider it if they owed less than 70% of value. On the other hand… if you’re going to buy it to live in, negotiate you best deal.
Oh yeah, rontayan aren’t these exactly the kind of people you should be looking to work with? Are they motivated?
Am I missing something here? I am new to the REI thing and trying to initiate my first deal. If you can get the house for say, 499k and then turn it around for 599k (well under market value according to your 650k comps), that would be a quick 100k. What’s the problem?
SWFlhouses - This is why
Judah cant afford it.
So he needs to come with a creative solution for him to swring this deal. Good luck judah
Newbie flroida investor
This is why
I talked to the owner and I’;m currently trying to talk him down to about 480k he does’nt want to budge, but he will lose it soon so hopefully time will work in my favor. I got a copy of the appraisal 535k is set a month ago. but i know it will go up soon.
I dont think I would waste much time on this deal. I see you said the 1 month old appraisal plugged in at 535k and he is firm on 510k. If he owes 439k and is not behind and no liens I would do as the others say and offer him 450k max.. all they want is a condo and your providing them with the down payment for one. The one worry that I have is that your trying to base your decision on the property value going up.. well great! but you also stated that you couldnt afford the payments. Whatever you do if you have strong concerns, fears or doubts... Walk Away. If you do know for a fact that you can flip that house in 30 days then offer them 450k, and let them call you back. Like others say about REO's... Your the investor, you dont need that exact property but they need to sell.