I NEED ASSISTANCE WITH THIS DEAL
Hello All,
I spoke about this particular deal a little in another post but here are the hard numbers to it. I need to make sure that I am in the right frame of mine before speaking with the seller on Friday at 1.
FMV = 499,000
Existing Mortgage= 330,475
Arrearage = 48463.30
Attorneys fees = 8000
Equity = 62017
Monthly Payment = 3413.45 PITI
Other houses in the area are going for 495k to 505k
Looking for all imput at to if this looks like a good deal or not.
Selling subject to for me looks like this.
49K Down
3500 Per Month
Sale Price of 499k
Please everyone look this over and let me know if I am missing anything. My presentation is FRIDAY 1o'clock. My main concern is not the verbal presentation but the Yellow Pad part and what to offer them up front. Any suggestions?
Sherrifs sale is on the 28th of Jan.
[addsig]
If you can afford to keep up the monthly payments, GO FOR IT. There's a sizeable amount of equity for you to bite into this deal. Take it on and sell the deal ASAP for the equity and you are home free.
Good Luck
What you offer them is all part of the negotiaition. Get to know thier situation and help them along thier path. If they are going to rent offer them first months rent. Or first month and security. Or...
Bob,
DOS clause is not an issue with a subject to deal, if handled properly. Remember, DOS was created purely for the bank's benefit during times of fluctuating interest rates. Bank writes loan at 7%, rates up to 14%, you go to sell your house to someone else, bank uses its OPTION of DOS to increase their yield, so let's go feeling sorry for the banks, please.
In using properly set up trusts, and obtaining a second insurance policy leaving the first one in seller's name as is, you avoid the normal triggers that may engage the DOS. Banks are in the cash flow business, not the real estate business - as long as you are an investor of caliber and plan on paying the payments until you sell, and you plan on paying the balance off, the bank will be quite happy to get their payment from person B, as opposed to person A.
Best, Dave
p.s. definitely sounds like a good equity deal, but how fast are those half million properties moving in your area? My suggestion would be to buy subject to, and sell via lease option, if you can get that kind of rent - pretty high, good luck
Thanks All,
Any ideas as to what the final offer to the seller should be?
[addsig]