Need Expert Advice..
Hey All
I have a possible deal in the works here in New York and wanted to run it by all in the cafe...
numbers are like this.. have a preforeclosure with about 6 weeks before auction.. property arrears and principal are 290k..
Market value on comps are 350k on this property.. I plan to try and discount this mortgage a bit more with the lender considering the owner has said they are willing to listen to offers..
Now im sure there are some other options i might have here.. I plan to do the short sale deal.. where i plan to offer 200k possibly.. and then in turn put up a ad the very same day.. for a quick sell at lets say 300k to start.. where as if someone comes in a wishes to buy at 300k .. then we can do a double closing correct ?
I make a contract with the buyer at 300k and then i close my deal with the mortgage co at 200k.. which would leave a 100k possible profit not including the closing cost and other fees ..I know I can easily flip the deal to a investor for a quick profit also , but the numbers look pretty good if I can get the bank to drop it a bit more for cash..and then in turn place a ad and get a possible buyer .
Now my question is .. is this my best 2 option on this deal or can i have 2-3 more ways to put a deal together here. this would be my first deal period..
Also i have a question regarding the pre foreclosure .. the owner had asked me if they owe right now about 36k in back payments and property taxes.. if the house is discounted and i buy it at 200k like i mention would that clear everything on that mortgage for the owner in foreclosure..
He is concern if i do get it discounted that he will still have to pay the bank what is behind at the moment.. I believe that if they take my discount on the mortgage as a cash buyout.. that this owner is free and clear of all debt when i close ..anyone that can share with me there knowledge on this is very much appreciated..
I want to help this person out bad plus its my first chance to make a deal happen for me..im very excited ,but i am also very new at this..
Thanks in advance
eliteprops 
I don't think that they will take your offer of 200K. You will have to show that the market value is that low. Are you willing to show comps?
Will they take less than what is owed rather than the alternative? Most likely but you have to be real you do not wont to come off like a late night tv junkie.
But then again I have done things that I was told that cant be done. I made some of them work but some did not work out so well.
""""He is concern if i do get it discounted that he will still have to pay the bank what is behind at the moment.. I believe that if they take my discount on the mortgage as a cash buyout.. that this owner is free and clear of all debt when i close ..anyone that can share with me there knowledge on this is very much appreciated.. """"
The loan company may forgive the debt but it may be counted as taxable income. So even if it is forgive they could get hit with a big tax bite.
"""I want to help this person out bad"""
LIER LIER
"""plus its my first chance to make a deal happen for me"""
The truth comes out!
I thank you for your response Lacashman.. as far as the low discount offer.. its for cash and because the property needs a bit of work.. but the comps are in the neighborhood of 325-350 in this area.. its a 2 family duplex..
So im hoping because the person is behind 7 months and near foreclosure that they would want out of it now and get that all cash offer..
eliteprops
I don't think the bank will go for your 200k offer. But on the real deal if you can put say 8k into the property and make 30k once you find a buyer, then you have made a good deal. Is the property rented at this time? What type of rents to pay out will the property yield? I would not pay 350k unless the duplex cashflows and has a bright future as for equity increases. Good Luck