Hello and Good day BP family,
Hope you all are having a great start to your evening.
I received an interesting call tonight from someone who's family member is behind on mortgage and needs out.
After talking to the home owner it appears that there is a huge amount of equity(paying on home 23 years) in the property and comps are considerably higher than what is owed on the property. There are two mortgages and the second mortgage lien position is looking to foreclose. She wants out so she does not hurt her credit and be able to wipe the slate clean and start over renting somewhere until she can afford to purchase again. Foreclosure process has not yet begun
So what I am working through are the following options (please chime in with additional ones if you have them :) )
- Whole sale it to an investor (we do a lot of business with) who we will then have us list the property once he repairs and we will receive a reduced commission on the sale of property on top of the healthy spread on acquisition(no money in but will be a smaller slice of the pie of course)
- Take over 1st mortgage, pay off second lien position 25k (ARM), buy owner out and help them move out and find a rental (would try to keep them there just cannot pay more than 2k per month so cash flow 147/m). Rent out to another tenant for 300-350 /m cash flow then Refinance and pull cash out to do another deal.... TRRR
- Get hard money put 25% down and purchase home, Catch up ARM or pay off rent out and break even on rent, refinance and pull cash out to do another deal. BRRR (Maybe hard-money wouldn't require 25% given the equity in the home)?
-Hard Money fix and list
The home has an additional bedroom that was done without permits and a bathroom extended into the garage without permits.
There are a few options that would work with this one given the spread. We look to create a win win for everyone involved.
Thanks for your thoughts just need some outside ideas : )
Cheers : )
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