Guidance/Help Sought
We have a purchase agreement on a 50 acre property, and have been pre-approved too many times to count. The property is "under contract" to a developer who is making final settlement for possession next week, has already sold lots from subdividing a farm. Our problems are FICO scores less than perfect, (had a mortgage approved on them though), now the "under contract" vs outright ownership for > 6m0. (?). This is my dream home, I am a nurse, my husband a handyman, minimal real estate savvy. Anybody with ideas? Quick, our purchase contract expires 5/30/05. 
You have a contract to purchase a property by 5/30/05 and are having a difficult time getting a mortgage because of your FICO scores? But then you got approved but are having trouble because your contract is written with somone who either does not yet own or has owned less then 6 months? Is that the scenario?
1) Ask the seller if they will extend your sale date
2) Ask the seller if they will do a short term rent to own so that you can get by the 6 months.
3) Tell your mortgage broker to start shopping for a lender who does not have a six month title seasoning requirement.
4) Try to borrow the money at a higher interest rate - maybe from a private lender - for the short term, until you can refi. A savy broker will know some private investors.
If there is around 100k of equity in them then yes, not sure I would wholesale them for just 10k though.
[addsig]
I believe the general rule of thumb is 20%, which is $1000 assignment fee for every $5000 of potential profit. Therefore, if this deal is yielding a potential 100k in profit, the assignment fee should be $20k
According to my calculations, you would have to get this house under contract for a lot less than 600K when you consider repair costs, closing costs, holding costs, and your assignment fee( I am basing this calculation on 70%ARV-repairs-assignment fee)
Am I missing something?
[ Edited by results_one on Date 05/11/2005 ][ Edited by results_one on Date 05/11/2005 ]
Thank you so much for your comments...
Indeed this deal did not work out as a wholesale deal or anything else!
I was dealing with a "Imustsell-sorta-maybe-perhaps" kind of person Note to me: screen better next time.
But as I am learning it was a great exercise to go through. This has just clarified it all for me.
Thank you for the support.
John