OfflineHello everyone
My name is Chan, I live in Merced Ca . I bought Deans book and had just finished it. Im a slow learner so i still need a lot of help. Im trying to get my first deal under my belt. lol
I found two properties that is willing to take over payments, both properties has missed two months of payments, its the same owner out of the area, one house is 211000--1300 a month and the other one is 135000 for 980 a month and is renting out for 800 a month. The owner is evicting the renter due to late and missed payments.
I like to get one of the house or both if i can find some help. The house that is 211k is probably worth 140k and the 130k house is worth maybe 90k. Any suggestions??
I have two buyers prequalified, one up to 150k fha and the other up to 120k, but they dont want any to the house because of the location.
Ok so your buyers aren't interested in those places because of their location, if I'm understanding you correctly right? If they don't like the location then find out from your buyers what area(s) they like to live in or nearby those areas. If values of those two places are less than what the owner owes to his lender then he'll have to work out a short sale or do what Greg M did in Student Secrets booklet (white booklet)and find buyers who are willing to take over the payments, they give you part of down payment (percentage or half) to cover the miss payments and make any repairs themselves and finance their own mortgage at those future values. Offer them a higher than usual rent credit that will cover a percentage of their down payment when they go to close on the house.
My name is Chan, I live in Merced Ca . I bought Deans book and had just finished it. Im a slow learner so i still need a lot of help. Im trying to get my first deal under my belt. lol
I found two properties that is willing to take over payments, both properties has missed two months of payments, its the same owner out of the area, one house is 211000--1300 a month and the other one is 135000 for 980 a month and is renting out for 800 a month. The owner is evicting the renter due to late and missed payments.
I like to get one of the house or both if i can find some help. The house that is 211k is probably worth 140k and the 130k house is worth maybe 90k. Any suggestions??
I have two buyers prequalified, one up to 150k fha and the other up to 120k, but they dont want any to the house because of the location.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
You don't have any deals here. The owner is asking way too much for the houses. If FMV is 140k and you're going to do a lease option then you should be getting the house under FMV. You shouldn't be paying more than 75% to 80% of FMV for a pretty house that needs minimal or no repairs. Based on that figure, your MAO is 105k to 112k. You then turn around and lease it with an option to purchase at 150k to 160k depending on the length of the lease. Also, you should have at least $100 monthly cashflow from the property when you do your sandwich lease. For example, you're paying the seller $800 per month your buyer will pay you a $1k month. At your current #'s it sounds like the seller is an investor who is trying to make his profit in the deal. You want FSBO not other investors, unless the investor is willing to meet your MAO. Hope this helps.
KimmyJ
Press on...
Thanks for the reply it is really helpful. I hope i can still pick your brain in the future. Let me talk to the investor and see if i can get one under my belt. LoL well thanks again.
Anytime! That is what makes this site great. You can bounce ideas off each other.
KimmyJ
Press on...
Hi Kenjikao,
If you have two prequalified buyers, you need to find out what type of property they are interested in buying, where they want that property to be located and at % below the FMV they are willing to pay for that property and then get that property under contract! Your buyer's criteria is your criteria! Once you haave the property under contract,draw up an assignment agreement for you and you buyer are to sign stating what your assignment consideration ($) is to be. Now the purchase agreement and the assignment agreement go together to the clousing table.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
KenjiKoa,
Great part on yourself taking the ACTION!!!I believe a Buyers List will always...Over-ride any discount one could get on any property.I hope my statement makes sense?"Your way and Your will"
Invest in yourself!
Thanks for all the inputs and once i find the right properties for my buyer and then i need to know what forms to fill out? I know its the agreement to purchase is with the seller and the assingment goes to the buyer right? What other forms do i need? or do i tell that to my buyers who are my friends that im doing this? Well for now i guess i should take one step at a time. Thanks again for all the inputs.