OfflineI'm new to the whole idea of investing, but am willing to give it a try. I'm currently looking at a home right now in Woodbury, Mn. Great location, great school system, nice place. The current owner wants to sell it and move to Florida. Here's the scenario: He owes $250,000 on it, its FMV is also $250,000. He calls me at least 2 times a week trying to get me to take it off his hands. From an investors standpoint, it does not seem like it makes sense to look any further w/ the property cause he owes what its worth. Am I missing the boat here??? Is there anything I can do to possibly make money off the property?? He has NOT listed it yet.
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I'm not completely sure but I think you could submit an application to the bank for a short sale. I'd be interested to see what ideas some dg people can think of.
Success and Nothing Less!
You always want to try to make a profit on the home. There are probably a lot of other better deals out there. The only way to maybe make this work is a sandwich lease option. You lease option the home and then in turn lease option it to another buyer. The profit to be made is the amount you recieve that may be greater than the monthly payment. Or if you give the seller his price but he agrees to zero percent interest say for 3 years with a balloon payment due after the 3rd year. You would then need to do a refinance or sell it to cash out the seller at that time. I hope this helps. Good luck with this potential deal. Believe and Achieve!
- Joe
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Just making sure I understand you correctly: Tell the seller that I will give him $250k after 3 years. In the interim, make his mortgage payments for him while lease optioning the home out to somebody else for more than the actual monthly mortgage payment???
Yes, you have it right. Try to get a lease option, if the selelr agrees, make sure you run title work to see all and any liens on the property. You will also have to file your option at the county recorder's office. If the seller is willing to entertain a lease option, you just want to ensure you cover all your bases. A real estate attorney could probably assist you for a small fee. Good luck. Believe and Achieve!
- Joe
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Joe Jurek CPA
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is there a site or a place on this web site that list all known real estate acronyms?..... to where i could study these i get lost when there is alot of acronyms being used ....
God Bless America
When you buy a property subject to, you are purchasing it subject to the exisitng finance. Simply put, this means that the loans stay there without any formal assumption on your part. The owner deeds you the property and you take the payment book and pay the mortgage until you find a buyer and or rent it out. You earn all the profits from the sale. You are basically helping the MOTIVATED SELLER get rid of a burden.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
I'm not sure about the website, but I do know that most of the acronyms are available in Dean's books.
As long as the original mortgage is not tampered with, can the owner still deed the property to another individual through a separate contact without breaching the original mortgage contract?