dthmiser

Probably more like Saint Patricks day by the time it sells, but still nice!!

Hello, Had a great suprise while working some calls. Someone called me about selling their house, and while I was getting the details they mentioned they really wanted to sell to an investor so they could move to a different part of town. They ended up telling me they wanted to sell for around $180,000. Comped out in the MLS conservatively for $220,000. Instead of doing a lease purchase for this, I ended up just straight buying!! Should be able to net a pretty good amount from this deal. Just goes to show you that if your available, the deals are too!

Doug, I appreciate your input still. Responses are what make forums successful.

Doug, Let me see if I'm getting what your doing.... Prime today appears to be 8.25 , so add 1% to 9.25%. 500,000 @ 9.25% 30 yr is 4,113 / mo rent. Is that what you would rent it for? I think that in Phoenix there is going to be a more difficult time with that because rent values have always been pressed down. If the rents are 1600-1800, I find it hard to believe that someone is going to pay 4,113 unless your giving them 70+% rent credits too. I would also imagine that your active pool of t/b's is reduced. Maybe I did something wrong though. Michael - for CA's your recommendation would be to price it appropriate to move. Basically getting it as low as you can compared to the FMV rent yet still giving the owner some incentive to use you.

Hello, I've got a potential person interest in doing a L/P, however I'm looking for a rule of thumb for the spread you can typically find between FMV rent and then the L/P "Rent", giving at least 50% credit. This is probably going to be a C/A, but I'm not sure what the "normal" spread should be. Any rule of thumb would be great. The FMV rent on this property is about 1600-1800 (COMPS are about 475-500k). Because this is my first deal, hopefully someone can come through with guidance!

I believe this is one disadvantage to having a license (but there are a billion reasons TO have your license). I don't believe it goes well with the Code of Ethics to communicate with properties that are listed unless your under the "impression" that they might not be listed any more (expired).

I've done some research and the short sale is definitely the way to go here. Is anyone here experienced (or at least done 1 short sale)? I've seen on some other places that doing the listing and having someone do a ghost offer on the property (meaning that the offer isn't serious - say 100k below). This will get the ball rolling at the lender faster by having them get a Broker Price Opinion and doing the math on what kind of offer they are realistically going to accept. That way when a "serious" offer comes across, the procedure will go quicker for the potential buyer. I don't know if that violates any code of ethics, but it seems like it would be great for my client. Has anyone done that before?

Thanks for replying. There is a danger of liability problems if the home doesn't sell before any foreclosure. However, this is a Deed of Trust so we know that there is at least 30 more days before the foreclosure process starts, and then the period of time between notice and actual foreclosure itself. If priced below FMV but still allows them to get out of the house without a big deficiancy then the lender may not attach one. The main thing I'm trying to figure out is what price the market will take QUICKLY without being too low. I'm also concerned that I've never done a short sale, and don't really have a good reference for them at this point. Is there an agreed upon program or person to consult about this?

I need some help trying to figure out what way to take this scenario (this is a friend of a close friend who needs help & good advice at the least): Comps: 290k Loan: 318k (June 2006) 1 Loan, HSBC 60 days late currently (2500/month) Cooperative Divorcing Couple, wants rid of the property but absolutely zero $$ to contribute to anything Homes in the area are taking about 120-150 days to sell at "comp price" Am I missing something here or is the bank going to need to take a haircut of around 90k in order to make this deal profitable? I'm an agent so I could list the property and get an offer for a short sale, but I'm a bit nervous about the liabilities incured during this because of the potential of no sale by the time a foreclosure may happen - unless the price is low. I am looking for some quick input, need to get back with them ASAP.