OfflineOk, here I go. I have a chance to make an offer for a friends step daughter to lease with option. She has no money nor do I. I am so new I cannot dry off fast enough.
So asking is $109,900. I have documents showing it auctioned in August 2011, but relator indicates it is a short sale and may have one offer pending.
FMV is according to assessors office $150,644.00, so equity.
I have no team really yet other than CPA.
I think that offer should be around $55,000. Plan would be to hold for as long as possible, unless option is moved on.
Perspective client seems to have solid career with a delivery firm.
I can work with client to determine costs, it is the first steps I am kind of lost on,ok, maybe not lost, just fearing for myself and family as to 'what if'. I know we all have been through it, but till one is done it is just natural.
Any guidance would be great. I truly hope Diane my couch calls this week, looks like I need to call her.
David -n- Anita Maret
peace,
Dana w/ Crossroads Solutions LLC
http://www.DanaLeigh209.com
http://www.DanaLeigh209.net
http://www.ULostThis.com
---
I am direct to the VP of a $100 million dollar open-ended debt and equity fund which actively writes checks to fund businesses with an EBITDA of at least $1 million a year. We fund also have access to up to $500,000,000 for the purchase of distressed real estate, specially commercial $7,500,000 and up.
1.If it is indeed a short sale how do you intend to take possession of this property and then do a lease/option to some one that has no money? Do you have Proof of funds and earnest money so you can submit an offer on a short sale? What are you going to do if your offer is accepted? How will you close? Banks won't lease/option their properties. You will have to finance it yourself if you intend to lease/option this property to your buyer that has no money??
2.Never establish FMV by the assessor. Their numbers are meaningless. You must use sold, currently listed and under contract comps to determine true FMV. An art in itself!
3.Call your coach, she will explain why this strategy on this particular deal won't work with no money down. Some one has to buy the property, than do the lease/purchase to your buyer.
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
Micheal, thanks for your reply.
I am not so sure yet if it is a short sell. In any case, my LLC did plan on financing it if things work out.
As for FMV, I used assesors just to see where it was at. I checked Zillow and it showed $127,000, still equity in site.
As for client, she may have a small depposit for a lease option, but does not have the large cash deposit banks are requiring. Her career is fairly stable and she has been with this nationsl orginzation for some time.
I have checked numerous other REO's and this will be first to move one, then follow the other next, but plan to use other peoples money. My goal is for banks to finance even if I pick up at asking price with good rate for cash flow.
This is why I asked for guidance from others.
Couch was to call me last week and did not.
David -
I know Dianne has been out for personal reasons. She is very good about calling clients back. If you don't connect with her and need assistance, call the Success Academy advisory line. We have several coaches that will be able to assist you and talk more in depth regarding this opportunity.
There are, however, a couple of things I want you to think about. In your first post you said it may be a shortsale and then in a later post you implied that it might be an REO. It's very important that you clarify which one it is because that will determine how you will make your offer on this property. Making an offer on a shortsale is very different than making an offer on an REO.
A couple of options:
1. Work out a lease option with the current owner (if the current owner is an individual and NOT the bank) then work a lease option with your buyer. This is called a "Sandwich Lease" There may be back payments that need to be brought current and the balance owing on the current mortgage may be more than the property is worth. Get comps and run the numbers.
2. Purchase the property yourself or under your LLC. Then work the Lease Option with your buyer.
There are many things still to consider with this transaction. There is an opportunity here for you but we need to run numbers to verify and make sure this is a sound deal for you. Its nice to help a friend but we want to make sure you will be able to make money as well or you are wasting your time.
I strongly advise you to call the advisory line to discuss the details over the phone with the Success Academy Coaches and we can work with you through each step. You are doing great! I hope this can be a lucrative deal for you!
Good Luck!
Karen
KEEP MOVING FORWARD
"If it is important to you, you will find a way. If not, you'll find an excuse."
_____________________________________________________________________________
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125