Owner Just wants payments paid and practically wants to give away the property

9 Replies

I spoke with an owner that lives in Maryland but has a property in NC. She still pays the rent and it's becoming a burden. She wants out immediately (because of her current situation with having to move out of her current home). 

She expressed to me that she's just looking to get help with paying off what she owes and giving the house for $1 if she can...

So that leads me here.. My question is. As an investor what can I (or an end buyer) do to help someone in this situation?? *the amount owed is pretty high* 

Numbers:

1,968 sqft -  3br - 2 bath - owned for 10 years - basement - few upgrades

ARV: 115,000

Owes: 93,000 *no liens or other fees* 

Repairs: ext paint, carpet in basements, front/back door

talk to a local attorney about taking over the house with a subject2 deal and get  

@Brian Gibbons take on this 

If this was a deal I was looking at I would see if the property falls into my general criteria.  What is the goal for this property if you do buy it?  Cash Flow? Flip? Buying for Appreciation?

 Does it create a large enough profit for your time?

After the renovations what type of profit margin are you looking at?

If it can create a positive cash flow for you then subject 2 is a good option if she is just trying to get out.

If it is in bad enough shape that she can't list it, see if she will sell it at a loss and bring some money to the closing table.

It costs 10% to sell a property.

IF you got $115K - 12K to sell - 93K owed - repairs = THIN DEAL.

I would get a highly successful realtor to look at the project to maximize sales price and minimize marketing time.

What are the rents and the payments?

Seems like it would not make a good rehab even with little work to be done since there isn't much spread over what is owed.

If it would cash flow you can either rent it yourself or try to wholesale it for a quick couple grand to a local landlord that will like getting a cash flowing place for just a wholesale fee, and possibly some repairs depending on how disagreeable those items you mentioned are.

Originally posted by @Rahdia Green :

She expressed to me that she's just looking to get help with paying off what she owes and giving the house for $1 if she can...

$ 1 seems a little high...

Offer her $.70...

Actually I second the wholesale idea mentioned above. 

Originally posted by @Rahdia Green :

@Shaun Reilly the mortgage is 900-1000/mo.. with 93k left to pay off 

 What are the rents in the area?

If that payment includes escrow for taxes and insurance it might work if rents are probably north of $1600/month.

@Shaun Reilly

 The rent in the area is pretty low 600-1100 avg. That's why she figured renting it wouldn't be the best idea.. I'm thinking having her put it in auction?..

Originally posted by @Rahdia Green :

@Shaun Reilly

 The rent in the area is pretty low 600-1100 avg. That's why she figured renting it wouldn't be the best idea.. I'm thinking having her put it in auction?..

If rent might not even cover the payment I don't see a lot of potential to do anything with it yourself, or sell it to any other investor.

Maybe others have thoughts but the only way I can think of off the top of my head to maybe monitize the lead would be if you could wholesale a lease option to a owner occupant tenant buyer.  Someone that might be willing to pay at the top of market rents (to cover the owners payments at least) if they have a strike price of $93K for a place that will be worth $115K if they put some sweat equity into it.

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