Offer On Sub2 Acquired Property From Buyer With Less Than Perfect Credit. Is This Wise To Accept?
I have had a Sub2 acquired property for sale for a few months and received an offer yesterday. The buyers went through Bankruptcy a year or two ago and don't have money to put down. I am asking 89.9K and they offered 95K with me holding a second for 20%. They are approved for he first at 80%LTV. Basically this would give me 76k minus a 2.5% broker commision and $50/ month payment onthe second with a refinance to pay me off in a maximum of two years. The 76k would cover all of my money in the house and I have requested a quarterly statement showing that the first is up to date.
Is this a bad deal or is there anything else I should be weary of? The numbers work for me....
What will be my tax implications? Will I pay gains based on the 95K this year or just the amount actually received?
Thanks!
1. Recently Bankrupt. Might be able to ignore that with enough cash down.
2. NO deposit? See item #1.
3. They just went bankrupt, and they want you to hold a second? Yeah, they can have a second from me at about 23%.
4. They can't come up with at least $5K? (See no deposit/second note issue) C'mon, beg, borrow, work two jobs, sell things at the flea market for six months.
5. They just went bankrupt, and somehow they're going to guarantee paying off the second (not to mention keeping current on the first) somehow?
No freaking way. Is this house currently on fire, hosting riots, or underwater, or something? Advertise for a nice Lease/Option buyer with a nice fat deposit . . . or a Land Contract w/Deposit and a nice rate.
Make your money going in . . . I'm getting a tattoo of that next week . . . I'd advise you to at least post it on the fridge.
The tax issue is meaningless beyond the other more significant issues.[ Edited by 3 on Date 03/07/2004 ]
What 3 said
Run...
Sam