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Guest Bill (FL)

Motivated Seller

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Guest Bill (FL)

Hi All,

Got a call from a lady today saying that she got a notice for foreclosure. She is 6 months behind which is a total of $4,368. The only thing I am familiar with is L/O's. Could use some advice on what I may be able to offer her.

 

FMV 100-120K

Pmt(PITI) 728

HOA 120.00 a month

Pmt's in arrears(6mo)$4,368

Owes 82K

Its a 3/2 with garage

1370-SF

Needs no repairs except cleanup

Just wondering if I could do anything with this or should I leave it alone.

Thanks Bill(FL)

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Hi, Bill. The numbers as you present them tell me this deal is too thin to make it worth your while.

I won't consider putting down almost $4,400 as option money, which is what you would be doing here. Does she have the cash to put down herself? She might, but figures why throw the money away if she is only going to find herself in the same predicament, (in arrears), six months from now. If she does have the cash, perhaps you can convince her that if she brings it current you will then be responsible for all future payments and maintenance. That might make the deal worthwhile. You're getting a property for nothing down, and you can either do the lease purchase, or go for the deed.

Short of that, I don't see much else here.

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Guest Bill(FL)

Thanks Michael,

I appreciate your advice. I will pass unless she can come up with the arrears.

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bill,

 

this is cut and pasted from another thread

Okay here is an Idea maybe MC will chime in with a more complete answer...

 

Have him sign an authorization to lease information, talk to the bank and see if they will do a forbearance where you pay 1/2 now and pay a little extra over the next 12-24 month.

 

It may cut into your cash flow but that will give you a few grand upfront and a nice backend

 

You never did say what you get for rent on a house in that area.

 

I would also findout what the house is really worth. A 20k spread could make or break this deal....

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Guest Guest_b3531

Thanks for your response, Batman

The rents in the area should go 1k or 1200k a month

I looked over the comps and they should be going for 118k or 120k

Its a development that was put up in 1985 and is still a nice area

Im going to get that loan info from the bank and I'll let you know whats doing

I was also thinking that maybe I could get a straight option for 90days and see if I could find a buyer. It will be subject to finding a buyer. If I do find a buyer I will sell the option to him

 

Just thinking out loud about all this.

Bill(FL)

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I was also thinking that maybe I could get a straight option for 90days and see if I could find a buyer. It will be subject to finding a buyer. If I do find a buyer I will sell the option to him
You're right! This is another possibility that allows you to get your hand in this deal without risk to you. Get a Pure Option for the payoff price, and ninety days to find a buyer. If you do, you can assign him the option for a quick, several thousand dollar assignment fee. That's making lemonade from lemons.

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Michael,

 

I am newer to this game of having owners come to us, but, I would think to jump on this deal. Isn't there about $30,000 in equity there

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Hello, AMG, and welcome to The Naked Investor.

I am newer to this game of having owners come to us
You will quickly find out that the key to your success in this business will be directly related to having homeowners finding you, not vice versa. In other words, market, market, and market some more.
Isn't there about $30,000 in equity there
Not even close. The FMV that Bill had showed a low end value of $100K. You'll always need to anticipate the worse case scenario when trying to estimate the profit potential. The homeowner owes $82K on a house worth $100K. That's an $18K spread. Factor in the $4,500 needed to bring the loan current, some carrying costs while you're trying to sell it, and you'll see the deal is way too thin to make it worth our while.

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