OfflineI just spoke with a gentleman who must do something now, as he is behind on payments, and is trying to work with the bank to avoid foreclosure.
He is disabled and moved out of the house. Has someone to rent it for Dec but isn't sure about wanting her, but needs heat in the house and income.
2 bedroom 1 bath, very nice house. Well taken care of. I am to call him back around 4pm and he will give me 2 days to help him and hold off on the rental person.
I can't financially do anything, and the house is west of Madison so quite a haul for me from where I live.
He didn't trust investors, but said after talking with me, that he liked me and appreciated the answers to his questions about investors.
I am too unsure how to help him, but he is willing to talk to me or anyone I send his way.
I haven't run comps yet, will do that today. But any answers? He bought the house 4 yrs ago?? for $136 and is asking $111k and could come down a bit more.
I intend to listen again to Greg Murphy on the Edge DVD, but this man really wants to sell, but again, will work with an investor he trusts!
Any ideas, about even assigning. He will do that, but can't afford to heat the house while we do an assignment. Lease option possible,,,but he can't afford to take care of it anymore during the lease..
Thoughts??
Sandi
Wisconsin owner must sell now!!! Needs help!!!
Posted on: Mon, 11/15/2010 - 17:42
Wisconsin owner must sell now!!! Needs help!!!
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- by sandiboots
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Watch Greg Murphy again but this is the bottom line on doing a lease/purchase on this or any other lease/purchase concerning a property in foreclosure.
1. How much $$$ will it take to bring the mortgage current?
2. Is this amount low enough to pay off and still charge your tenant/buyer more on his down payment?
3. What is the monthly mortgage payment?
4. Is it low enough that you can charge your tenant/buyer more so that you have monthly cash flow?
5. What is the buy price?
6. Is it low enough so that you can add on and make money at closing? Remember your buyer will only be able to get financing on what the property appraises for.
I don't think the spread is large enough to assign the deal, actually I bet it is really close to short sale material. Figure the commissions and any remodel and repair, closing costs and he is not going to make any money and is most likely upside down at that point.
4 years ago $136,000. What does this number have to do with anything? Current listed comps and 90 day sold comps are what you need to look at. I bet they are less that what he owes!
Good luck and keep us posted!
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