Scenerio
I have a gentleman who is about to foreclose.
He owes 153,000 on his house, is 3000 in arears, has a prepay of about 4000 and his house is worth 225000.
It should take me 2-3 months ( 2400 in payments) and 5000 to make the house look nice.
That gives me roughly 57,000 in equity to work with on this deal.
I am taking it subject to, and told the gentleman that I would give him money at settlement, but never specified how much.
How much should I give him to make him happy?
As little as possible. Find out what he planned to do with the money and you will see how much he is expecting. You might want to ask him who to write the check to, or if he needs it in a cashiers check for his new landlord, etc etc.
Good Luck,
Kyle