Deal Analyze What should I do?

Question

Anton De Vries · Answer

@Tynia Avery

Seeing the situation she's in, i would offer points up front. She's getting married so probably could use the cash. Not sure about the rest, because I don't know background info on the house. The points upfront and you assuming the loan may be enough. Map out an exit strategy so she knows what exactly your gonna do, and when she can expect it. That will build confidence and trust . And if you exit early, and get her loan paid off, well you've done what you promised! Early! I always wanna do right by people! It's important.

Anton

Manny Cirino · Answer

@Tynia Avery you have a few options you can choose from. Wholesale the deal to your buyer or sign a Lease with an Option(what I call first dibs to buy) to purchase and flip the Option(or your exclusive rights to purchase the property).

If she owes $143k then that is the minimum she can accept, also take into consideration the closing cost, because she has to pay to sell the property. She will need a bit more to cover those expenses, unless you offer to cover all of the closing cost.  Also take in to consideration, is she selling because she wants to move, is she depending on the equity of the property to make the transition?

As long as you get the price low enough you could make a decent profit on the flip, but your end buyer will have to be someone interested in holding it long term. There is no room for a Fix and Flip; assuming that your numbers are correct.

Anton De Vries · Answer

@Tynia Avery

If your going to do a purchase hold, try a " subject to" or seller finance with a 3 year term

Tynia Avery · Answer

@Anton De Vries Thank you for the advice. Definitely want to do right by clients and will look into a good exit strategy. Thank you!

Tynia Avery · Answer

Hi,

Thank you for responding to my question. So I know I could do the subject to term for the existing mortgage for a 3 yr pd term to pay off the remaining $143k, any other advise on how "subject to" acquisitions of property should go?

Thank you so much,

Ms. T Avery

Manny Cirino · Answer

@Tynia Avery Can you elaborate on whayt  exactly you want to do with it. In other words are you interested in a quick sale or building a rental portfolio?

Deal Analyze What should I do?

Most Popular Reply