I have a deal I am working on. I have a property under contract that somewhat landed in my lap easily and my error was determining my exit strategy in the event all did go well. Because I hadn't thought it out too well, I am hanging on while seeking some guidance before I sign contract and commit.
The home has pretty good equity and is a good candidate for a flip or very quick sale. I have a family member who is looking for a home to buy and he will be using VA loan. His credit is good so no unforeseeable issues in that department and the home is VA eligible I am sure as very few problems exists with it. My dilemma which may be easy but I am over thinking and missing the "how to" of it all, is how do I obtain the home and then sell to him so he can use his VA loan? The home is headed for foreclosure in October and I have all the pay-off information from the bank, authorization form completed, etc. The owner is so overwhelmed he had his own attorney draw up the contract from a proposed one I provided and as soon as I sign it (if I do) he is willing to give me the keys so I can start doing what it takes to repair and market home. He was a RE Investor in the past and life has just knocked him down a bit once he lost his regular job and he doesn't want the foreclosure on his credit.
Citimortgage is aware I am trying to help the owner with all this. He is behind almost $50K on his mortgage and Citi says he can sell prior to the sale if he can. As long as they get what is owed them, all is well. I had entertained getting the owner reinstated but my end buyer (family member) just wants to use his VA for it and be done without any of the extra stuff of reinstatement. Owner has given me permission to do what is needed to sell the home and only desires $2500 for himself so he can place a deposit on a condo and move things to storage in meantime. I am ready to do that but need some suggestions how to make this deal work.
The home is valued currently at $180K and mortgage balance (payoff) is $139,117. My buyer will buy as is but of course I'd do some minor things to update if needed. My family member is a wounded warrior so I am honestly not in this for a huge profit as I would be from a sale to another buyer. He has sacrificed enough that part of me just wants to see him fulfill his dream of having a home. He can use his VA on another home but he really likes this one. Any ideas on how to make this a win-win for all parties involved? Thanks.
It sounds like you need someone with about 150k cash to come in and fund the purchase and rehab... I would offer to split the profit with them. ? Not sure of any other way...
Join the Largest Real Estate Investing Community
Basic membership is free, forever.