So Umm, Wut Wud U Do???
Hello folks!!
There is a house in a pretty hot section of FL, that needs my attention (atleast I keep telling myself that :coolgrin
. The house will sell at $230k (comps lead us to believe in less than 3 months), the seller says she owes $185k (she has given us 3 different figures, she is unsure, and each time I speak with her she says she will call the bank and doesn't). When we first spoke she said that she "needed" $20-25k, this was 2 weeks ago, she calls me today and says that she thinks she owes $185 and needs $200k, which then means she now only "needs" $15k. She doesn't mind keeping the financing in her name, but says she "needs" $20k (BUT, todays conversation leads me to believe that she "needs" less than $20k maybe $15k), so would this be a good canidate for sub-to? Maybe an option to purchase? Thanks, Tim
why is she selling?
Have you found out WHY she "needs" $15-20K? Have you also did any "realistic price layout" layout for her?
example: House for sale for $200K, -7% agent fee, -3% closing costs, -3-5% discount, - 3-6 months holding, etc. You can easily eat up 15-20% of "equity" using this. Will she still have $15-20K equity after?
Roger
Thanks folks, keep em coming, Raj, you bring up a good point, and if I was too list this house my profit would be eatten up also Thanks, Tim
Almost forgot to add, she is a single mother and full time student, she says its too much house for her to handle.
[ Edited by HasSpoken on Date 03/15/2004 ] [ Edited by HasSpoken on Date 03/15/2004 ]
if you are going to be giving her money up front.....get the deed!!!!! i would only give her a thousand or 2, if you are going to lease-option.....(or as little as possible). Get her to sign an "authorization to release information", get her account number and call the bank yourself.....if you are going to be paying on/paying off <eventually> this debt, i wouldn't go on her word of what is owed!
I'm a newbie, but here are my 2 cents anyway. If you find out that she has 15k in equity, offer her 20K(1k now & 19k in 2 years. If you l/o, you can use the t/b's down payment to pay that off.
You can appeal to her situation by saying that if she can wait a couple o years, she will get more $$ for her childs college fund or whatever. Subtle, huh?
I'm sure the guru's have more to add, but you get the idea. She seems motivated to work with ya.