Seller owes too much on her house
So the seller was recently divorced from her husband and their house was left to the wife. She says she doesn’t know what to do with the house and that she owes a significant amount on the house. But she is willing to work with me to see what she can do. How should I go about this or should I even continue to work with this lady?
Most Popular Reply
@Bryant Pryor
You can help this seller even if the debt is high. Of course, you need more information to make sure. What's the after repair value, debt, payment, term on loan,if loan is current, market rent, and cost of repairs needed is a good start, on the property. Then you find out what seller can do to help transaction. Can seller cover payments for a while, make repairs, add more real estate, add more cash to buy something bigger, go to bank and borrow on this property or another, seller finance, lease back after close, use their IRA on another deal, provide contractor for repairs, pay off house, are all good questions to get answered.
And there are many more. Knowing how to buy over leveraged properties will allow you to buy the property that a less experienced investor can't. From the information gathered, you decide what method to use. Could be seller finances with no payment for a year, or you may be offering to buy the note from bank, and anything in between. The easier to do the deal, the more competition you have. I have bought houses that my competition referred to me, because they only focus on one formula. I try to keep a bunch of tools in my tool bag. Reach in and grab the right tool, the correct strategy, and get to work.