How To Handle This Wierd Situation?
I have been working with an agent having her find me motivated sellers and good rehab prospects. She has been doing a great job and she is a real talker. Everytime we get together she tells me about all the potential deals she has going on. I met with her last night to look at a vacant foreclosure and she started telling me about a woman she had met with yesterday that her husband had died and now she doesn't have the income to pay the mortgage anymore. Well, she could pay the mortgage but wouldn't have enough money to buy groceries and other stuff for her kids. My agent was trying to get her to get her house on the market and get her to move into an assisted living apartment complex and she wants to move to the apartment complex but doesn't want to list her house. She told my agent that December will be the first payment she will skip and stop paying all together and live there as long as she can. What should I do? Should I ask the agent for her name and try to work out a deal directly with the homeowner for a subject to and in turn relist the house as a handyman special with the agent as incentive, or should I try to get a short sale on the property. The figures go like this.
As Is CMA - $60,000 - $65,000
Mortgage - $40,000 - 45,000
Any suggestions would be appreciated.
She will need money to move etc. Have the agent make her the offer of a $1000 and do the sub2 plus pay the agent 3% of the purchase price. It is best to get her our prior to closing but if you have to let her stay longer but with a lease agreement in place. Really do not want her there in case she learns about bankruptcy at your expense. If you have the cash to fix up the property you will make more money.
Hope this helps some
Ted Jr
Thanks for the idea but being kind of new to this I wanted to try to work something out no money down. Why pay the agent 3% when I buy? Wouldn't the fact that I would list it with her be enough incentive?
No way. Agents are people to and looking for a way to maximize their profit as well. Offer her 1.5% now and the future listing.
Is sub to my best option. That bancruptcy statement scares me alittle. Should I get a hard money loan for the 1,000 to the homeowner and 1.5% to the agent and do a sub to or just get a hard money loan for the whole thing and try to sell it myself.
A hard money loan for 1000.00 ??? no such thing. you might just cash advance a credit card. you dont get anything for nothing. experience will out way money. if you dont have any experience you need money to get in the game of real estate investing
Bigcape
A hard money lender will lend on LTV not downpayment, credit history...etc.
Mike
maybe a way to do it is to pay your realtor friend a referal fee and you take the house by either sub-to or get an option on it. Have your realtor person list it and give her a higher commission when it sells.
ionno if i know what i'm talking about, just my $quarter$.
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