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Learning and Burning

From s.l.o To buyer wanting to be on title.

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Happy New Year All.

Got this s.l.o deal, and the place needs work. Place is nice and livable but needs work. Buyer has seen it wants it but feels more secure for doing the work to it that he wants to have more of a steak then lease with option to buy. Seller is open to such,so now the What do i do to get him his securiity for such? And give seller her security? and keep me in the deal. Im working on the get in and get out part now. No more s.l.o now dine and dash.

Staying Hungry....

 

 

Thanks again....

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If I understand you, (and it's Happy Hour here, so I'm not sure that I do), the potential buyer in the deal plans on doing some needed repairs and so he doesn't want to run the risk of putting cash and sweat in the deal and not end up with title to the property. Is that about it?

1) Are both parties on the same page about this? If so, what has been discussed about keeping everyone happy?

2) Can the buyer get financing, or is the property in disrepair to the extent that no lender will go near it?

3) Since you have an existing agreement in place with the owner, you're protected in the deal, correct?

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Don't think the house will finance.

Seller is widowed and would like to sell. She's open to getting something done. Been trying to sell herself. Looking to talk with her to tonight about such.

Yes buyer wants to do the deal but has concernes as mentioned.

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The tenant/buyers concerns are understandable. Never repair a property you don't have title to. Does the owner understand that the house can't be financed in present condition? Would she be open to some short term owner financing? A land contract, perhaps?

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That's ideal. As an example, the owner can offer a short term loan with an agreed to amount down, amortized over 15 years and a two year balloon. Of course, all numbers are negotiable.

But this would give the buyer the opportunity to purchase the property and the seller gets the monkey off her back. In the meantime, the new buyer makes the necessary repairs and increases the value of the property, making a refi with the bank more likely. Once he refinances, the seller is cashed out.

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So, example.

Price. 115,000 $ 5,000 down

Amortized over 20 years with a balloon in 3 years. @5%

 

Buyer to do all repairs etc, by that time to get financing.

So, for writing this up and how i get paid now, is from the down $? As i was looking to get 2-3 k of that origally. Then im out of the deal.

And how would i write tihis up? What contract? and it gets recorded as a ? with the county.

You know the old C.Y.O.A that my mom mumma told me bout.

 

Learning waiting to get burning on this one.

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Since your changing the deal in midstream, your payment isn't as cut and dry as it once was. Has anything been discussed with the seller about this? You aren't being unreasonable at all, earning $3K for your smarts and effort. If a licensed Agent were in the middle, the seller would be paying double that amount.

There are a number of ways you can protect your position. I think the easiest would be to first reach a verbal agreement with the seller. Then scratch out a simple Promissory Note that states she owes you $3K upon receipt of down payment from buyer. Call it a marketing fee and you should be good to go.

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That's definitely between homeowner and buyer. You're not a licensed Broker and you don't want to behave like one. They agree to terms, they deal with the paperwork. You have a Promissory Note on the side. When the deal goes down and the down payment is made, you collect your marketing fee and move on.

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I dont want to put myself in any situation that gets me grief. So wont be acting as what im not and wont even do it on T.V.

So, that guy wants to do an inspection and is making this more difficult then needs be i Think. One of those types.

Now got another buyer interested for a lease with option to buy. Seller has agreed to terms, but now i will be simply handing over my tenant buyer to her for a fee then im out. I have a lease with option with seller. She has agreed to take less then original contract $110,00 to $99,000 same terms and monthly. And now i am wondering what i need to have signed? with who? and be able to walk away HAPPY....

 

Keepin on.....

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