All Forum Posts by: Erik Gladish

 Thank you very insightful.

Hello Smart Money!

I have a seller who has an off market property and she would consider owner finance and a creative strategy.  
She bought thr property 3/9/22 for $999,000
Has a $590,000 Mortgage

The property has a seperate entrance for a 1 bed/ 1/bath + Make Shift little kitchen to the left- she says she gets $2500
The entrance to the right is a 2/2 but can be 3/2 and she gets $3,500 for it.
She has a 2 car garage with an additional attached space that could be converted to an ADU- $80k ish

On the open market she wants $1.2

How can a Subject to or seller finance deal be arrainged to be win/ win for all? What should my offer/ terms be? 

Hi All!

I recently closed a deal with my parents- I found the deal and project managed it and the deal was that we would split the net 50/50.  I was not calculating the FTB in my estimates- so the question is- should I ask to get my 50% before the FTB? Obviously this is what I would like because it would be a $10k difference to me, and I feel it is justified as it technically is them paying their tax as I will be asked to be paid tax on my earnings and I won't ask them to foot the bill.  

Another option- as this FTB payment is a withholding- ask that if there is a refund at the end of the year I recieve 1/2 of the refund.  

What is the right way to go about this?

Thanks in advance,

Erik

Thanks JD.  Per her selling, she says the sherrifs will have to take her out of the house physically.  Thank you for clarifying the basis as well. 

Seller is the surviving decedant of a home that was in reverse mortgage. She is working on taking possession of the home with her own reverse mortgage and as a successor she can although she has not been paying or able to afford property tax payments of 900 a month (ish). She has trouble paying taxes on the property- and it has gone to foreclosure for non payment of property taxes.

She has applied to the state sponsored Home For All and hope this will help her.

She got a covid extension on the foreclosure till October 3.

She would deed the property to you with the clause that she will remain there untill her death.

This home is literally 20 homes to the beach in a neighborhood of 1.5M homes + in ventura county. She owes 503K and the property is valued at 1.4M right now. She is 59 so could live for another 20-30 years.

You get $900k equity on day one with the above conditions.
What benefits could there be to you?
Using property as a HELOC to draw against for future projects?
Using property for Depreciation against active income?
1,400,000 / 27.5 = $50k a year and maybe you bump it up with a cost segregation analysis and bonus depreciation.

I'm sure you brilliant minds will find more ways to skin this cat, but does anyone see any value? Enough to put togther a deal?

I am a Realtor in Ventura County and have been coming across situations for creatives more frequently.

Erik

My understanding is that VA and FHA Loans are assumable.

You can call your title rep and get a list of all the VA + FHA Loans in your county.

Good Luck!

Thank you that makes sense- and it is the direction she is attempting! Very helpful!

Thank you @Joe Homs !