Hello Everyone I need help on how to structure a deal. This is a Motivated seller who I have contacted on CL. Right now his property is vacant and he has remodeled it. It was rented for $650 but he no longer wants to rent it out. He wants 57K but did mention he would do owner financing but he doesn't want to do it long term. I am not sure how to structure an offer on this to make a deal. He does have a mortgage on it but he said its about $30k. I am in Tx so I don't think a L/O would be a good idea. Its Comps at 53K.
This is a little vague to me, but I hope you can find an answer from an experienced person on here (following!). Are you planning on renting this out or living in it? What makes him motivated and can his 'motivation' drive the price down to at least comp price (which I'm assuming is accurate to the best of your knowledge)? If you are renting this out, has he or can he prove that it rents for that much in that area?
My exit strategy is to maybe to a wrap and then find a buyer to owner finance. I am not sure if I can do it. The ultimate goal is to resell it and make a lil profit
There is no deal. Unless he sells for $30,000 mortgage pay off and $10,000 or $15,000 on 5 year owner financing.
You cannot buy property for $57K that is worth $53K and money. If you know how tell me how so I can do it too. If rent value is really $650 per month then I would put a value of about $48,000 on it. If it needed no repairs I would probably pay about $39,000.
Agree with Bill and Arlan. There is no way to buy the house with owner caring the paper when they have a loan on the property. If the numbers worked out better on a differant situation you may do a lease option to buy when you either get another buyer to buy it from you or you have cash / loan in place.
Look for a better deal, they are out there.
Good Luck, Dave
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