I have a motivated seller who cannot afford to pay her mortgage anymore and will let it go into foreclosure if nothing is done.
The property has $730,000 in loans
They Owe $440k / 39% equity
The average sold in the neighborhood is $659k
Never had a seller like this and new to real estate investing. I am grateful for any advice you have to offer.
I was thinking Lease Option?
What do you mean the property has $730k in loans but they only owe $440k?
What would be your exit strategy? Only thing I see would be retail but what is interesting is if they have so much equity why have they not listed it for sale with a Realtor?
There must be a tremendous amount of repairs needed. Your holding cost would be a lot on this unless you have your own funds to buy it.
If your doing lease option you would most likely need to make repairs which it sounds like the owners cant afford and you dont want to make them with your money.
This is a moderate to high risk deal unless you structure the LP correct. Good luck!!
Please tell us
1st pmt monthly, fixed or arm
Repairs if any
Current or behind, if behind how much to catch up to current
What does seller want to do (rent another place, etc)
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!