My sister lives next to a house that has been for sale for over a year now. She is asking way to much for the house and that’s why it isn’t selling. Come to find out she only owes $30k-$40k on the house and it’s worth $115k. She is asking $130k right now. She has a lot of relatives in Texas and would like to move back down there. She has a daughter that lives with her but doesn’t help with the payments, ect. So it sounds like she’s barely making her payments as is. Would this be a good sub 2 deal or is there something that would be better.
A better deal would be any deal with a realistic and motivated seller. This homeowner obviously has time on her side if she is priced above market and has been patient to the tune of a year already.
I agree with AJ - she obviously isn’t too motivated being that she has sat on it for a year. Even if she does let you in on lease option, she’s probably not going to disount the price to make it worth while. If you are not acquiring equity, what’s the point?
Whether there is a deal or not depends upon the seller.
If the seller is cash strapped and barely making ends meet, there may be some motivation to sell at a more reasonable price. If the seller has $80K equity, there is a lot of negotiating room to work with.
The way you structure an offer somewhat upon what you will do with the property if you buy it. What is your exit strategy? What is your alternate exit strategy?
That is why I need suggestions on how to approach this deal. Yeah, I could do a sub2, but would that benefit me more than that of a lease option. Obviously, I could rent it out or do a lease option (sandwich) in return for maximum profit. I know people here in this city have money, so if they can’t get a loan, they certainly would be interested in a lease option. Matter of fact I keep eye on craigslist for people needing a place to rent. Then I ask them if they’d be interested in a lease option and most have said they would for the right house and not to exceed their maximum payment.
Brian
P.S. I may have just answered my own questions. Thanks guys, it helps to talk out loud.