How Much Assignment Fee Should I Get It?
I get accepted for short sale propety $325k and value of the house low 495k-high 600k so how much should I assign this deal to investors? Help
I get accepted for short sale propety $325k and value of the house low 495k-high 600k so how much should I assign this deal to investors? Help
If you can get it financed at 5%, more power to you, but what is the ARM based on? Have you considered what a 1% interest rate hike will do to your cash flow? Are you aware that you may well be paying 10% or more when you refinance in 3 years on a commercial property?
Chris
Quote:
On 2006-06-17 15:02, ypochris wrote:
If you can get it financed at 5%, more power to you, but what is the ARM based on? Have you considered what a 1% interest rate hike will do to your cash flow? Are you aware that you may well be paying 10% or more when you refinance in 3 years on a commercial property?
Chris
It will be fixed.
IF your goal is to buy that property without having to invest any money out of pocket, your are most probably an optimist at it’s best; however your lack of ability to come up with $350K out of pocket might be the good thing and here is why:
7% commission to selling broker sounds excessive for your aria. If this is inconsistent with the truth you might be presented with few others (e.g. GOI - what his tenants really pay in rent + NOI - what are the expenses, etc.) that may adversely alter your perceived cash flow.
Before you go any further, ask yourself the following question, why would someone give up 8CAP in exchange for a 5% interest on a note if not in anticipation of the declining property value of more the $90K, which is what atracts you in this deal and for him is worth sacrificing considering the potential gain?
What I am suspecting here, the seller is looking for a sucker to pay of his $350K debt then, having the 1st TD position, he can easily foreclose and regain the ownership - free and clear if the market dives more then 15% leaving y$350K investor with no equity facing refi at much higher rate.
Keep in mind that your percived CAP rate does not take in consideration your debt liabilities and proceed with caution!
Good Luck!
[ Edited by REOCON on Date 06/21/2006 ]
[/quote]
It will be fixed.
[/quote]
Sorry, I read that as 3 yr arm-
Chris