OfflineHey I have a owner that I have put and optoin to buy contract on his house! Here is the deal he wants to seel his house for 9,000 tired of keeping it and don't have the money to rehab it! The house is a 3/1 with 6,000 in repair cost and arvis 71,000! He is willing to do owner financing on the house with a small payment to nothing down and wants 500 a month for 5 years! He said that someone could use the downpayment on the house to fix up the house for as carpet and paint and a kitchen! I was trying to flip the house for 15,000 or just have someone get the house and take the down payment as my fee for bringing the buyer to the house! What should I do I have a contract option to buy the house on the house and have lees than 30dyas now to make a profit! Please help!
Help need information!
Posted on: Sun, 11/28/2010 - 00:05
How much can you lease the house out per month?
What he's looking for is not much a month, If you do it right you can get paid upfront,monthly cash flow, and a big payday down the road.
Jim Kendrick
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
If your numbers are correct, here is your deal, if your strategy is to wholesale it. It should be!
You get the house under contract for $9,000. Assign the contract to your buyer.
Your buyer will pay $15,000. You make $6000!!
His fix up is $6,000
$21,000 total acquisition costs for your buyer!
ARV $71,000
His commissions and closing costs when he sells for $70,000 = Around $5400
$44,600 net profit with an investment of $21,000!!! Every investor within 100 miles of where you are will buy that deal in a heartbeat!!
Go to your buyers list and find a rehabber or landlord and market that deal to them.
Here is the catch, That house HAS to be able to sell in this market right now for $70,000 If your ARV and repair costs are accurate that is a GREAT deal.
Keep it up and let us know when you assign the contract and close!!
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
Kris
Just thought about it as was coming back to amend it,was going to tell you basically what Michael just did, Thanks Michael for catching my slip up. I got to remember that most new investors don't have the cash or experience to do the rehabs, I've been doing them so long it's nothing do me, a couple days work. Just do exactly what Michael said to do, and you will be fine.
Jim Kendrick
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
How can I get the house and do the rehab myself! Because the owner will work with me but I don't have the money or credit to do the rehab.
Kris
GO BACK UP TO RESPONSE NUMBER 2 READ IT CAREFULLY, THEN FOLLOW THE INSTRUCTIONS MICHAEL GAVE YOU THERE. YOU DON'T NEED TO REHAB ANYTHING,IF YOU DO WHAT HE EXPLAINED, AND NO MONEY EITHER.
Jim Kendrick
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
Once again IF your numbers are accurate here is what you can do. You said you have no money and no credit. This rules out a Hard money loan, most hard money lenders will not lend to some one that has no money in the bank. However the numbers on this deal are so strong they may work something out.
Your best chance if you don't flip it (you should) would be to find a private money partner to fund the deal.
I don't think you are ready to do anything but an assignment. Some creative financing with the owner will leave you responsible for the monthly payments and you said you have no money for the down payment. Back to a money partner!
A possible lease/purchase, but I don't think you are up to it yet. Do you have an owner/tenant lined up? If not, assign it and move on to the next deal.
If I were you I would charge at least a $10,000 fee. IF and I mean IF your repair and ARV are totally accurate.
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
If you want to get the house,find a Private money Lender and get the cash to close the deal.Rehab the house,find a good tenant and rent it out or Option to buy and get a monthly cashflow.
whurndon
H&H PROPERTY SOLUTIONS LLC
Hi Kris,
If the deal is as good as you say I will fund it:
Here is what I suggest.
I pay the buyer cash $8000
I put in the funds to fix up the property. let's say $7K just incase you are under estimating
We then list the property for 50K: since you said it should sell for 70K I am being conservative here.
I pay you $10K after the sale. If repairs are more and property does not sell for 50K your commission is less.
Cheers, Tony
Kris, Tony is your "no money, bad credit" answer and it will seem that your deal should be all locked up and in the bag now!
I wish you the best and hope this is your most fortunate day!
Bryant
Bryant Slade
Just ran comps on the property and the value is not there. Kris can possibly still make some money and I wish him the best, but I am out.
Tony
Do your homework and get the numbers right. Take a deep breath and relax, so that you can focus on what you need to do. If you haven't already done so, go to your county's tax assessors website/office and get as much info about the property as you can find. Perform your due diligence and make sure that all the numbers crunch and if they don't, then make sure you have a good escape clause in place. From what you've said, the owner's extremely motivated to sell. Find out why! Have you gone through and inspected the house from top to bottom? If not, do so! Is he behind on his mortgage payments? In pre-foreclosure? Just make sure that you know his property almost like it was your own. Also, remember one major thing....THIS IS A BUSINESS!
Bryant Slade