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I need help.

March 16th, 2012 | posted by Monte Coy

I have a seller that owes $37,000 on his house that is assessed at $115,000. He also owes $20,000 in back payments, attorney fees, interest, ect. How do I take control of this property before it hits the Sheriff's Sale within a month? The house will need $30,000 of work, but there still is a profit to be made! The seller just wants out of the house and move on.

If anyone has any thoughts on what to do .......I sure would appreciate some advice.

THANKS!
MC

On 19:22pm, March 17th, 2012 joeyharp_2001 said:

Short Sale it?

joeyharp_2001's picture

I have one way, but what is the best? Do this, go to facebook and put in Ca$h Flow Investment Club. Use the dollar sign instead of the "S" in the word cash. This is a site of we DG's and also post this! Do it today/as soon as you get this. THEN WATCH THE EXPERIENCED LAY IT OUT FOR YOU! DO THIS TODAY!

On 19:23pm, March 17th, 2012 joeyharp_2001 said:

THEN BRING WHAT YOU HAVE LEARNED HERE

joeyharp_2001's picture

KEEP EVERY BODY ABREAST HERE ON WHAT YOU LEARN, AND WHAT YOU END UP DOING!

On 20:21pm, March 18th, 2012 AndyS said:

Here's an idea....

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The first thing you need to confirm with the seller is that they will take a price of no more than what they owe on the house. If so, a wholesale deal for this house should be about 40K-42K. The buyer would have to be told about the back taxes and such to prevent the sheriff sale.
If I did my calculations correct: 115 x .65= 74,750.00 minus 30K (for repairs) minus 10% (holding and misc costs) =40,275.00 minus 20K for back taxes = 20,275.00. This is the amount you would need to negotiate for in order to make a wholesaler happy and you about 1,500.00. The caviat to this is if you have a buyer who is happy with a smaller % profit then you can up the buy price by the difference of the percentage. You could also be able to add to your fee somewhat depending on the seller's needs.
Another choice I can see is if you have an end buyer who is happy and willing to buy at 10%-15% below market value with which you could sell at 97,750.00 (15% below assessed value) and have 87K + your costs for getting the deal. This assumes that the assessed value you quoted is the current MARKET value. They are not always the same. This would bring your profit margin up but take more effort on your part. Of course, if you could sell at 10% below assessed/ market value, your profit margin goes up too.
Just a couple of things to think about.

Andy Sager
DG's AndyS
CFIC member