A coworker approached me Friday about giving his property back to the bank. I asked a few questions and found he is current on mortgage and no longer wants to pay for this property and where he currently resides. This property is in richmond Virginia. He told me that it needs some fixing up to rent out (a realtor told him). He also thinks he is $20000 upside down. I haven't looked much further into it yet because I'm not sure what and how I can help except maybe give him a contact. Correct me if I'm wrong but I can only think of doing sub2 and rent (if it cash flows) or he does a short sale (which I doubt because talking to him he just wants to be done paying for it). Should I look further into it for sub2? Anyone know anything about richmond? If I did sub2 and it is out of state what would I have to do legally do protect myself differently from an in state property?
There are professional short sale negotiators that will pay you for that lead.
would a lease option be a possibility? your coworker remains the owner, you (your llc) lease the property from him, fix it up or whatever, and you find and manage the renter. renter pays you rent , you pay your coworker the monthly lease, and coworker continues to pay his mortgage. this works if your coworker is looking to rent and not take out another mortgage for a new place.
I would never improve a house on lease option, buy it on sub2 first, Richmond is a major va market.
Why would u buy an underwater house????
Thanks all for the advice. I'm interested in exploring the options for the seller and what options I may have I would consider something like this. It is the first something like this has came my way. This is why I ask before before commuting to something I don't know anything about.
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