Need help asap!!

How much could she afford to pay monthly? Would you qualify to refinance a loan of that amount? Could you make the monthly payments if she defaulted?

Do you have other buyers in this price range?

What are all the other numbers? Taxes? Insurance? Other costs?

Would the seller consider financing all, or part, for a certain amount of time to YOU, until the lady is able to buy outright? If you could make enough on the deal maybe you could finance the downpayment for her to get a loan, and then sell the note.

Just thinking out loud.

to add to Rinas......remember hard money comes at a high price, so you really need to protect yourself as far as being able to do a conventional refi. As Rina said, you need to be very careful what you can carry yourself. Since the woman is already over-leveraged, if she defaulted or backed out it will all come back on you. These are big numbers so while I dont want to discourage you from a good deal I encourage you to turn everything in inside out and run your numbers very carefully.

Just because she asked for 590k doesn't mean you have to agree with it. Negotiate to lower the price and better yet, make an offer for 490k and then try to assign for 570K to another investor. It's just a thought, but i totally agree with Rina an Laura. You have to do your work and make sure all the numbers are in placed to project yourself. Sounds like a great deal if you play your cards right. Good luck!

thank you all for your words of advice

....hate to break it to you, but the seller of your house in NC (his name, I'm sure is Michael A....r) is not completely honest with you. I'm in direct contact with Michael since January 15th already.... (because somebody who is new to DG's site contacted me with his contact info, and asked if I can help him find a buyer/investor).

Michael contacted me as recently as yesterday to tell me that HE found a lady/investor to whom he wants to sell, and wanted me to shell out money via my private lenders. And btw: He offered me this property already last month at a substantial lower amount than the $590K you are supposed to pay him!

Just so you know: All the private lenders I presented with the details were not willing to make a move on it. If the house were in CA, I would have been able to sell it already.... but the golf fanatics (with money) rather buy someplace where they don't have to battle heat waves, moscitos, muggy air... (I'm quoting here).

I think that something about this whole deal is.... off. I don't want to say fishy, but... my gut instinct tells me to stay away from it. I think this owner is playing several people here.... you and me included.

Nick, you are welcome to call me so that we can discuss how to proceed....

Conny
(727) 394-4986

thank you for the information.
I have been in touch with him since a couple of weeks before christmas. He has never gone lower than 575K "unfinished"
I tried to find a local investor who I could assign this deal to, but noone wanted to touch it for two main reasons: 1. it is in a very remote part of charlotte, about 50 miles south east, and 2. because most of the houses have been sitting on the market for several months, some as many as 2 or 3 years.
then he told me that he found an investor who wanted to seller finance it. I thought perhaps I could find a short term loan and refi with as much equity was in the deal.
This deal just seemed too cloudy from the start. I tried to find a way, but I am not going to get into something like this, especially being an out of town investor.
Best regards,
nick

I would be very careful investing in something out of town, especially if you are new at this. My first try was on a 4 unit building in Indiana. It was close to a college that had double digit increases in registration for the two prior years.

Basically the person that was working kept saying things were getting done and by the time I found out that was not true, he had sucked all my rehab money from me. It was a great deal and I should have been able to do the repairs with the budget I had.

It was a friends family member's property, so I knew the background on it. However being in Indiana he recommended someone and I trusted it would get done. I am in a wheelchair due to a diving accident, so it not easy for me to take a long trip like that. I should have had a contract but we were trying to get it done quickly. The property was given to me for $90,000 and had a market value of $160,000 before repairs. I wish I would have known how to do assignments or the IEE then.

Tim

Nothing says you can't lock it up and try to sell the deal as an assignment.....When in doubt....just lock it up. Be sure you have the "subject to" clauses in there so YOU don't have to buy it, but with a flexible seller and some hard work you might be able to market the deal to someone more capable of paying that mortgage.