Okay first subject to deal and i think the sister just killed it when she gave me the new payoff amount.
check out the numbers on this subject to:
$15,372.19 to catch up on the mortgage
$ 2,000k to sister to move out. amount coming backout of their profit.
$ 4,715.14 in back taxes and liens I'm going to pay up front to clear title but its coming out their profit.
purchase price $240,000k
pay off amount 188,320.40k
okay I'm paying 15,372k to take over loan then rehab the property for 45k then pay off the mortgage on that back end. I'm going to give the owners their profit before i rehab and don't forget 2k for cash for keys that's coming out their profit.
$25,200 closing cost that's 7% of arv 360k
Tell me what you get
THIS **** GOT MY HEAD HURTING WHEN I SAW THE NEW PAYOFF BUT ITS A DEAL KILLER.
If you take out a 360K mtg at 20% down you pay 72200; 25% down 90K. You're at 67K before you close, $92K with closing. Why go through all that hassle to wind up with something you could probably do straight forward? Just curious - I've never done anything like this.
I can't tell what the new numbers are compared to the old numbers but would like to know what attracted you to this in the first place.
you said several times "out of their profit". Are they staying in the deal??
If they are 15k behind, they should get several thousand and be out. When I do a sub to, they know that they are about to lose their home and they take a little moving money and they sign everything over to me. They do not get to share in MY profit.
Having to come up with that much cash to close the deal, i would just offer them a cash price. They will probably take less if they can get paid off immediately.
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