Deal Or Not To Deal !
Hello Junkies, I have this deal on the table right now that I really cant figure out. The wife wants to live across the street from her friend, which is the house i have on the market for 209000. So they send me offer to owner finanace the property for 184000 w/ 10k down and 800 month as is! Mind you my 1st position on the note is 170000 and minor repairs are needed paint, carpet, perssure washing and your good to go. Cash is KING for me cause I have none or wait finish the repairs and get a buyer for 209K. 39K whoa!!!!
Quote: Cash is KING for me cause I have none or wait finish the repairs and get a buyer for 209K. 39K whoa!!!!
If cash is king then sell the house for 209k. I do not understand what a person who needs cash finds attractive about financing a property. Is there a short term balloon?
Some questions ...
1) how much were your acquisition costs: money to owners, hazard insurance, title insurance, mortage payments, closing costs etc?
2) how much money would you have to put into repairs to sell for 184k vs 209k
3) how long have you had the house for sale at 209k
4) will the house increase in value once you do the repairs or are you marketing a house for 209k that still needs carpet and paint.
5) how much would be he selling costs for the 184k vs the 209k
6) how much is your PITI today on the property. FYI - 800 mortgage for a 170k house seems low. What is the interest rate on that?
Well the property only been on the market for a month with the intent to make cosmetics repairs and sale for 209k. As is the property well fetch 184k. A little blood sweat cost 7K mostly carpet, clean out gudders, and upgrade counter tops. The acquisition costs was a pre-forclousure @ 165K 7.5% rate 4950 closing cost monthly $1329 PITI to the owners $2500.
If your monthly PITI is 1329, how are you going to do a land contract for 800 a month?
Sobe! manifesting forbearance under provocation or strain. (patient) and finish repairs. Thanks!
The first question that comes to mind is whether you have an assignment clause in your Lease with Option to Purchase agreements?
Dave
[addsig]
From a purely legal standpoint, all Contracts are assignable unless specifically prohibited by the verbiage.; however, it is always good to disclose that in writing. Bear in mind that although Contracts are assignable, you will still ultimately be responsible, because you can never assign obligations or liabilities--not even if the Contract states that you will be released from all obligations and liability (it will not hold up in court).
[addsig]