Owner finance?, lease option???Wholesale??????

So im about to have my first deal under contract. :beer I wanted to get your input on the best way to structure the deal.

Balance on existing loan 124k
Home value-158k-168k based off comparable sales in last 6mos
$3600 behind in payments.

The lady just wants to dump this property. Now the neighborhood is in a wealthy but rural area in white house, tn. Their was some construction work done in the bathrooms but never finished.

rehab cost i estimated about 10-12k

So do you think i should try structure a short sale with the lender because of the small rehab then do owner financing with the seller, then lease option the property to a rehabber?

Also as far as it getting sold to a rehabber can i list it with an agent to get it sold even if i don’t have complete ownership of the property?
Should i be structuring a short-sale deal or just lock it under contract for what is owed?

The idea i had was to owner finance it to a rehabber for a monthly income and once the rehabber sells i get the difference, rehabber gets his return and the homeowner saves her credit

Your input is priceless

thanks in advance

A short sale won’t work as its worth more than the loan. Depending on where she is in the foreclosure process I would suggest doing either a straight option or a lease option. The straight option would let you tie it up and then sell the option to an investor. The lease option would tie it up and then you put a tenant/buyer in to catch up the back payments with the option fee and they would make rent payments and buy the property at some point down the road. To do this you either would have to make the repairs or find a T/B to do them in lieu of the option fee.

To learn more about lease options and straight options go to my RE blog and see the Lease Option Page or look for the options article on the pages section. The blog link is below in the
signature. If you have questions ask in a post or PM me I’ll be glad to help. I love lease options.

Good luck,

There is not enough room in this deal. Say you got it at $124k, put in 12K to fix it up, you are at 136K into the deal. I go conservative and say you sell at 150K, Realtor fee 6% is 9k, you clear 141k - 136k = 5 k. That does not include holding costs or any unforeseen repairs.

Why doesn’t the owner just list it for $135k? It may be on it’s way to the foreclosure auction and she is out of time.

You need to get someone lined up before hand

“Also as far as it getting sold to a rehabber can i list it with an agent to get it sold even if i don’t have complete ownership of the property?”