What strategy would you use on this property?

2 Replies

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

Comp value

1st payoff
1st pmt monthly, fixed or arm
Market rent

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)

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