OfflineI've never read about this type of deal before so I thought I would bounce it off everyone to see if I'm missing something. I am buying a foreclosure for 11,200.00 and going to re-sell (lease/option) to an end buyer for 29,500.00. It is a three bed/ two bath with 2200 sq ft on 2.2 acres with three out buildings. The lease term is for 5 years with zero down at 11% interest and 750 per month. He work for the State of Michigan and has for 25 years(not going anywhere. His fiancee also will sign on the dotted line. I think I have everything covered (attorney is drawing up the paperwork and buyer will be responsible for taxes and ins) and he has even agreed to have his payment auto deducted from his account each month. The realtor said if something went wrong I could quickly sell it for 15k. It was listed at 25k. Am I missing anything? Also, is it possible to sell the "paper" once the deal is done at a discount? I've heard about people doing that but don't know anything about who to contact. Thanks, Brad
possible deal
Posted on: Thu, 12/29/2011 - 21:56
Why not get a down payment, and why not 40K, looks like you'll be waiting for your money for a while, any more deals like that, whats the AVR, 2.2 arces should worth 25k with out buildings why so cheap? Is there a lot of repairs etc. ...... other then that sounds like a sweet deal for the buyer for sure..John H.
"Action and Mistakes" always-outweigh "Analysis Paralysis"
...Just do It"
http://www.linkedin.com/pub/john-hoening/23/2a3/164
"Action+Knowledge=Success....$$$$$$$$$.....
www.WeFlipDesMoines.com http://facebook.com/desmoinesinvestmentproperties
www.iowarealestateflipper.com
Would you fill out your profile info...Thanks..John H.
"Action and Mistakes" always-outweigh "Analysis Paralysis"
...Just do It"
http://www.linkedin.com/pub/john-hoening/23/2a3/164
"Action+Knowledge=Success....$$$$$$$$$.....
www.WeFlipDesMoines.com http://facebook.com/desmoinesinvestmentproperties
www.iowarealestateflipper.com
PM me if the deal goes through and you want to sell the note down the road.
Barbara
P.S. fill in your profile
Brad...in the current environment, the worst option is to sell the entire note. There are other options that can return 100 cents on the dollar. Or do a first for 65-70% LTV and carry the rest on a second. Sell the first to recoup your money and keep the second for income.