Here's a deal that just landed on my lap but I am not to sure the numbers will work for "Me"or an "Investor" . A family member has a property and willing to let me handle the property he owe's $71,000 on the mortgage monthly payment's are $643.58 there Is a renter In the home & she pays $750.00 amonth .This property was appraised two years ago at $75,000 It Is now on the market thru a Realtor for $81,900 the going price In the area is $85,000 as mentioned by the Realtor to the seller .
Also the contract Is up at the end of January my question Is how many options or route's can I take wether It be holding on to the property my self as a short term Investment and letting the Renter keep paying the mortgage but under a lease option , Selling Wholesale to an Investor ,or just Pass It on for a finders fee to an Investor , If so what Contracts would I need to make sure I cover all areas especially with my family member he does not want to have anything come up on the credit report showing that he still pay's on this Home when trying to purchase another I did here that there Is a way to free up your Gross Income so It wont show up as another opened Credit because this Is exactly what he has to many opened credits? If I am wrong please walk me thru the process I thank you all & God for bringing you guy's In my life :)
There ain’t much meat on the bone on this one. If you intend to pay cash and flip you need to be at 70% of the retail value less any fix up. Lets say you can sell the house once vacant and fixed up for the $85,000 with new carpet and paint it should shine and sell within 90 days if you have an OK market. I am guessing $5000 in repairs. 70% of $85,000 is $59,500 so you should only pay $54,500 for the house but sinse the loan amount is $71,000 you can not buy for that low of an amount unless you try a short sale which would hurt the credit of your realitive.
About yur only option is to do a sub2 deal and then get the tenant to agree to pay $850 per month on a lease purchase with maybe the extra $100 going toward the down payment. This will make you some change monthly and you may be able to get a downpayment too from the tenant/buyer. Also if you relative shows paperwork that shows the property is leased that that income will help offset the mortgage payment allowing them to buy a new house. I believe they knock off 25% of the rent for vacancy and maintenance which would be just about a wash if my figures are correct.
You could also get a new loan to buy it if you have the credit and perhaps some cash to put into it. Here again you may be able to get some cash from the tenant/buyer to help with the deal.
All you need is a standard earnest money contract from your area and a lease purchase agreement with the new buyer. I have heard even two different instruments are better for the sell with a simple lease not mentioning the sale and then a sales contract closing in a year or so showing the $100 per month going toward the down stroke as well.
Having a hard time writing my first Standard Contract to Purchase R.E. : Buyer
Since I have no money for a attorney to look over any thing that I’m writing. Well I’m new, I seem to be running in all dircertions,working on a plan.
Since I have no money, I would like On onwer’s term’s. ???
Hmmm, well lets see. I will throw this out strictly for brainstorming purposes.
It depends on weather or not you are going to buy the house and if you have any money to put down which might make your payments even lower in this case.
Another thing you could look at is…what interest rate your family member has on the house. If it is low I think you can have him deed you the house and then you can do an owner financing for the gal that wants to buy it. If you can create a big enough spread on the interest you can then sell the note just like a bank does. This way you don’t have to worry about the fix-up and maybe even get a little option money up front.
You might just want to walk your fam member through it and split the profit so you don’t have to go through the deeding over process.
