Help Me With This Assignment Deal
I need some opinion from experienced investors.
This is the L/O deal...
FMV 177K-$190K
The investor guy who wants to give the house (his has deed from the original seller) for $4000 assignment fee. He agree to pay the seller $168K about a year ago (at the closing in 2006) when he took over the property and occupied it with tenant/buyer in 2002 (He agree to cash out the property in 4 years. I have to sell it by Nov of2006) The tenant/buyer decided to leave the place in December since he is builing a brand new house. So...I have several months to look for a tenant/buyer.
I can try to negotiate with the original seller to extend the term until 2007, but if he says "no"...I would have to put tenant/buyer with 18months option to buy. Do you think 18months is too short?
The investor wants $$$ now for his new investing project (apartment). And he is selling about five of his properties.
I went over the contract...and it looks very good. But...since it is going to be my first deal, I am a little worry. What if...he is just getting rid of the house because the house has a problem and etc...
He seems very nice guy...but my husband is very worried and now I am...
Please give me any opinion about this deal.
Thank you very much in advance...
why not just retail the house now on conventional terms? if you can actually come get to the $190K end of your FMV range you put a few bucks in your pocket in 60 to 90 days without the risk.