Best Way To Handle This?
Here's the situation. I have a purchase contract (assignable) for $220,000. I have found a buyer willing to pay $230,000. Full value of the property is $275,000.
First of all, is there enough room there for me? And if so, what's the easiest/cleanest way to complete this deal? All 3 of us are located in separate states.
1. Why would you want to leave 45k on the table?
2. Is the buyer willing to buy your option for the 10k or is he going to want to finance it? If the latter, it will be tough.
3. Why would you want to leave 45k on the table?
[addsig]
Does the property need any work done to it?!?
To reiterate - Why would you leave 45k on the table?!?
You can have the 10k owner financed - have him pay you $200 a month for 4 years... That's a nice cash flow to have...
[addsig]
Ok..it's not that I want to leave money on the table..I'm just looking to get money out of the deal quickly and easily.
It is a rental property and I do not want to be a landlord at the moment. However, I know I can buy it at a nice discount so I know there is money to be made - I'm just struggling with the how's the best way to do that.
If you assign your contract, then you make 10k without ever taking title and with no money out of your pocket.
To buy and hold for six months ...
6600 - buying cost at 3%
8250 - selling cost at 3%
3000 - for buyer requested repair
16500 - 6% realtor commission
17600 - 220000 @ 16% for 6 months
1000 - property taxes
------------
52920
What money are we leaving on the table?
Brenda
Damn straight, I would never buy something with that little spread. But if you have a buyer willing to purchase the prop for 10k more than the contract, then just assign it, check on the funding, and show up for closing to get your check. I'd take these deals over a 4 month rehab hold and sell for 30k scenario all day long.
The greater the effort the greater the return. You are getting paid well for simly assigning your contract. Take your $10k and run with it. The average american makes $24k a year. Even if you were only making $1k to assign it. Really how much is your time worth if you dont have other deals to work on?
I love this business, we are never worth so much we cant do these types of deals all day long for any amount.
Personally, I would probably assign the contract and get on to the next deal. Simply because I'm inexperienced - and there's much less work involved.
If you don't mind, let us know how it goes.
I always say ! A bird in the hand is better a maybe later............
Do the deal and move on LOL :-o