Short/Sub2 Or NOT?
Got a lead from my web site that's basically this: Quote from seller below: OK, where to start. Right now I am living in the house. I have plans to move out on May 8th. He was supposed to take care of all of this house stuff months ago when I filed for the divorce. Of course he did not! No, I will not be able to make payments on the house and my new apartment. So, as you can see I am in need of a quick way out. All I want is to break even on the loan if that is even an option. Home info: NumberOfBedrooms: 4 NumberOfBathrooms: 2 SquareFootage: 1751-2000 Basement: None Carport: No Garage: 2 Car LotSize: < 1/2 Acre Stories: 1 AgeOfHome: 5-10 years IsHomeOccupied: Yes IsHomeListed: No MonthlyMortgage: 1247.00 EstimatedHomeValue: 118,500 EstimateRepairsNeeded: FirstMtgPayoffAmount: 104,000 SecondMtgPayoffAmount: CurrentOnPayments: Yes OwedForBackPayments: ReasonForSelling: divorce UrgencyToSale: ASAP Comments: Please help me! OK, I at least got the motivated seller signals :-D The seller is in Katy Texas and I'm in Austin. The comps I was able to get are from Harris County Appraisal District. They update once per year and pretty much are useless. However based on those comps I put the house at more like 110k. Listings in the same subdivision are in the 110 to 140 range. My experience is: Have owned 4 investment properties and had property managers for two. Working through William Tingles Sub2 course and GET IT. Haven't done a sub2 or short sale. Limited knowledge of shorts except for everything I've read here. I don't know the Katy area and only have a vague handle on home lease prices. Given all that, I know that I should be looking for 25%+ equity deals. So I'd have to sell it for 138k to make those numbers work for those ratios. Finally, the question is: Should I sub2 then LO? Walk away because I don't know the area? Bird dog it to another investor? Try to short sale the existing, current mortgage? Give up real estate investing for alligator wrestling? :-P The seller is very motivated and I'd not only love to help, but do it in such a way that I don't take it in the shorts and mitigate the majority of my risks in the process. Thanks in advance for reading such a long posting. Gary
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sub2 then LO
or
Bird dog it to another investor
I would sub 2, get 4 comps of the area, and lease for a profit, the lease would be 12-24 months. Don't walk away from the deal. :-x
Just so everyone knows, I bird dogged for a fee. William T., I gotta know...what would you have done?
Thanks,
Gary
I would have took it over sub to and then sold it.
Hello!
I noticed that a lot of you said that you would do a 'Subject To' and then sell it. Could you please tell me how you would structure the deal as the monthly payment seems to be high ($1247.00)?
Thank you!
Gary,
I would have passed or done the same thing.