If a homeowners is two months behind on their payments what is possible the best strategy for a new investor?
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Purchase from the owner with your own cash or financing.
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Purchase subject to the existing financing, pay the arrearages.
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Purchase on lease option. Make your option fee high enough to pay the arrearages.
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Wait for the foreclosure then buy at a discount as an REO.
Your acquisition strategy may depend upon your exit strategy. What are your plans for the property?
What if the property has tenants, should I do a lease option. The house is behind only 3,000. He will walk if it goes back to the bank. One tenant is paying $1100,the other tenant is paying 500. :help
Owner has $1500 monthly mortgage payment and only $1600 in rental income? If you buy, you inherit these tenants and their leases. How do you propose to make money on this property if you buy?
I don’t see a deal here. Pass on this one.
if it becomes REO - there is no guarantee that it will be a “deal”.
i don’t care who comes on here or who you see on tv - MOST banks don’t just give their properties away -
best time to buy a distressed property is while the current owner still has possession (pre foreclosure).
the more EQUITY in the property the better.
just because someone’s late on payments doesn’t automatically mean it’s a good deal either.
you’ll know when it’s a good deal - all this stuff you read on here and in books is good - but trust me - when there’s an opportunity - you’ll know it. for me, i get this feeling in my gonads that says “holy $%^! this is a deal!”
lol
for real though. i’m a licensed realtor in new york - i am coming across at least 2 deals a month - where I KNOW, there’s opportunity in something - very good too. no bs. funny thing is, it’s not my primary focus for my business. through my travels, phone calls and conversations, i just find them (or they find me).
so keep doing what you’re doing, but ask yourself this, “are you ready for a deal?”