Need Help With A Deal - Need To Call Seller Tomorrow
I hope someone can provide some input on how they would do the following deal. The seller is 3 months behind in payments. There is a 1st and a 2nd on the property which total about 173,000 with a $1400 month payment that covers both the 1st and the 2nd. The market value is about 188,000 - 195,000. The current rental market is tight so what I could get for rent in this area would be about 1,000 - 1,200 month.
The seller just wants out and to stop the foreclosure.
I thought about making up the payments and then taking the house subject to and doing a Lease Option on it, however with the numbers I don't think I could cover my expenses and would be at a loss every month. This being the case I am not sure the best way to proceede. I don't have the exact sale date at this time but, I believe it is March 11.
Any input at all would be helpful on this. I really want to help the owner because they have called a few other people and no one called them back.
Thanks in advance for your assistance.
You can try to do a short sell - which is negotiate with the lien holders for a reduced pay off. There is a short sell forum at this site. If he is just three months behind and has not been served, then you have time, but you need to get educated.
I just closed today on a preforeclosure house that had 86 owed on the first and 7 on the second. House as-is is about 100. The first took 64 and the second took 2. So I bought it for 66k, and not what was owed.
I actually bought the house with hard money, plan to refi, and then L/O. If you do not have the money to close, many people after the bank inspection (BPO), list the house MLS priced for quick sell and have a double close.
Brenda
Thanks Brenda.
When I contact them tomorrow I am going to go ahead and get the contact information for the loans and then get them to sign a release so that the lender will talk with me. The more I look at the numbers the more I think a short sale is best.
I have a Hard Money Lender that I should be able to work with.
I also like your idea of doing the listing in the MLS for a discount and doing a double closing.
If you have any specific guidelines on the short sale that would be helpful. I have been looking at that forum as well tonight.
Thanks
I would recommend trying to discount the second and doing a short sale on the first. This is your best bet!
Best Riches,
Jeffrey Adam
[addsig]
Can you still discount one the first? Is it rare?
Thanks
Just wanted to add an update.
I met with the owners on Saturday at now have the following:
authorization to obtain info
signed sales agreement
property discolusre statement
power of attorney for property transaction from both husband and wife
signed warranty deed
hardship letter
copies of w2's and paystubs
keys to house
The mortgage company so far has been good about talking to me on doing a short sale and holds both the 1st and 2nd mortgage at this time.
The BPO is going to meet me tomorrow at 1pm at the poperty - I need to know the best way to sway him to my desired price. I have solds in Nov/Dec for around 174k - however there aren't any latest solds except one under contract for $145k. I want to offer $130k - however the house is in great condition and really doesn't need any repairs.
Any suggestions.
If it were I, I would just reinstate the loan, have him pay rent, and then market the house at 190k take my 13 k, be happy, take my girlfriend out to eat, and find another house...just because you can't make 30k on a deal, doesn't meanyou can't do it. Quantity, not quality
Can someone please give me some advice. I have 174k to start in the real estate market I also have 32k in equity to tap in my own home.
Only problem with that I just purchased 6 months ago, but hey it can be tapped eventually.
Anyway, my question is:
I am 20yrs old and still establishing and struggling to solidify credit . My aim is to get in on short term REI, purchasing properties I could then soon quickly turn around and sell
(recouping my intial capital, tied up in it). I would have wished to have done this with very little of my initial capital. As you can imagine however, without credit lines, securing investment loans, my loan officer informs me, will be hard. This does not particularly trouble me, because I believe with a shrewd enough purchase/investment I can ofcourse
recover my downpayment and realize a net gain.
On that note, I could also do with some information on finding out what forms of
short term REI options I can pursue to allow me to make returns within a space of a few months of buying and selling a property.
My research currently consists of
three real estate agents specialist scowering the Dallas/ Fort-Worth Area for properties that can provide a 20k return and above.
I have also networked with loan officers and bank managers who have knowledge on REOs and
have managed to squeeze their contacts to proven rehabber investors they know. I have learnt
about municipal grants (which I used to purchase my own first home) and government low interest loans
for rehabilitation/ gentrification of distressed homes for the accomodation of government aided people (elderly, disabled) groups.
These forms of REI and others I would like to pursue further once I can at least make a positive return from my first REI purchase. I need only to make 20k or more to leave my job as a pharmacy technician. I have no debt and could live for a year on such a marginal return so as to allow me to delve into the many REI prospects throught Dallas and Texas. My main goal would be to
scower regional property markets and municipal grant programs for nationwide available REIprospects.
Just need to take the most succint avenues to seeing a return on my intial start up cash, I was particularly interested in what was said about negoitiating with lenders on a discount on deliquent lienholders debt, for the quick turnaround sell. I would like to also circumvent loan seasoning hinderance (that prohibits one from selling the secured property within months of purchasing the property) and would need to know about hard money lenders also.
If anyone could please shed some light on any of these things I've mentioned, I would be glad to hear from you.
My email address is **Please See My Profile**
I live in Dallas, Texas but would be interested in any REI options any where within the U.S. (as long as its financially viable, its never too far).
Thanks-- sorry for the long message
P.S. Anyone in any investment groups in Dallas/Fort-Worth vicinity?