Another NEWBIE Needs Help!!
I have this seller that is closing on a property in Phillipsburg on
Feb 25th. Since his offer got accepted, he has been transferred to
Monclair. He is not interested in renting it, doesn't want to be a
landlord!!
Asking: $115,000
Appraised: $125,000 (He is faxing me a copy of appraisal)
I said what if I offered you all cash - what would you take? He said
if there is an all cash offer at closing he would certainly be quite
willing to negotiate his price.
He is willing to do a lease option but doesn't know how to structure
it.
I don't know where to go from here... ANY HELP WOULD BE GREAT!!!
What are my options and what do I offer?!?!??
Thank you,
Matt
My thoughts...
"Cash" offer can mean one of two things:
1. Cash - really - no mortgage OR
2. You "waive" mortgage contingency in the purchase contract meaning that you will find the $ no matter what
FYI - the holy trinity of mortgage loans is...
1. FICO - Your middle score (this is the middle score from a tri-merge credit report)
2. LTV - "Loan to Value" - How much are you borrowing compared to the appraised value
3. DI - "Debt to Income Ratio" - INCLUDING this new purchase what is your monthly expenses compared to your gross monthly income
Exceptions are made of course, but this is the mortgage skeleton.
Post more details, such as:
What's the property worth? And most importantly, according to whom?
Have you searched public records for recent comp sales?
Your own circumstances (and don't worry you are anyomous here and among friends) - what's your credit status? Down payment?
Once again, I turn to the Veterans here, what's the income potential?
Best of Luck,
Caterina
What is your exit strategy if you have one?
What is owed and what are the payments? Find out this before you offer Sub2. I would suggest taking it subject to on this one. If the #s work. You might want to learn a bit more before taking this on. I say this because "the seller does not know how to structure". You need to have controll of all deals not your seller.
Best to you
Sire