OfflineI have a seller who I met with a few days ago and she owns a house that comps out at 72-75k that needs 10k in work to get it tip-top shape. The thing is she has a reverse mortgage on the house that is currently for the amount of 63k. So that leaves no room for an investor doing the work as well as paying off the RM.
She needs to move in a month to a smaller place cause she just cant afford the house she is in now with the taxes and insurance that needs to be paid.
Is there anything that can be done with this deal? Perhaps a short sale with the RM lender(if that's even doable)? Will the reverse mortgage holder likely tell me to get lost?
It'd trade it all, for a little more-
__________________
Hi Joe,
All your questions are about the acquisition side of the deal. How would you as an investor make money?
The house is worth $62,000 (Needs $10,000 not counting anything else owed.) Your purchase price should be around $36,800 to make this a deal, if you plan on wholesaling or doing the fix/flip yourself. I guess the first thing to do is get permission from the home owner to talk to the lender. Make them an offer. Then, how are you going to fund this deal? If you need proof of funds and transactional funds to double close this deal go to http://www.mdtfcam.com
Good luck,
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
...is open for doing a short sale to sell the house and avoid a foreclosure situation. She knows that she has no equity to speak of and if she went through a realtor the house would sit on the market forever. Even if it sold that way, she'd have to come to closing with cash in hand to make the sale happen.
When she gets back into town next week I can tell her that we can try to do the short sale with the RM company. I just want to make sure it's not a complete waste of time.
As far as funding the deal, my partner has the private money available to make the transaction happen.