Original message
| Doug Pretorius
   |  "Thought I would share..."
, Tue 1 Aug 08:17 
Well, rather suddenly I have 4 houses to make offers on. 3 motivated, and 1 not so motivated but open to ideas.
House 1: (I mentioned this one before) 3/2 semi in nice mature neighborhood, the house is in nice shape. Seller bought it just 4 months ago and husband isn't making his half of the payments. She's asking for me to simply take over her mortgage of about $120,500, I suggested a lease/option, and she says she'll call me back next weekend after coming back from vacation.
House 2: 3/1 100+year old house in small town a few minutes from my city. Hardwood on the mainfloor, brand new carpet on the upper two levels, freshly painted, could use with a coat of paint outside. Appraised for $130,000, willing to sell for $123,500 or less if I buy it direct (currently on MLS) there's a $75,000 1st with 3&1/2 years until renewal, 6.3% amortized over 25 years. Seller willing to hold 2nd. The real promise of this place is the potential to split the lot and sell that off for $30,000-$40,000.
House 3: 3/1 townhouse, young couple couldn't make payments and are now renting it out at cost. Eager to get it off their hands. The mortgage is $62,000 with 2 years until renewal, 6.1% over 20 years. Looking to get $74,000 (FMV $80k-$85k) Payments, taxes, insurance and condo fees come to about $700, which is $200 less than market rent. The tenant is faithful in his payments and is trying, but so far unsuccessful in qualifying to buy. I suggested that I'd buy the place with my father's credit and sell to the tenant so he doesn't have to qualify now.
House 4: 2/1&1/2 This is the one where the seller says they aren't desperate, but are open to ideas, the home is owned free and clear. They want at least $74,000 but FMV is about $70k. They are currently L/Ping and the tenant hasn't paid their first month of rent. The L/P is for $79,000. I thought I'd offer $60k cash or $75-$80k if they hold the entire amount, I won't mention interest, but up to 5% would keep payments acceptable.
Doug
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Replies:
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| lynnhahn
| "Re(1):Thought I would share..." , Tue 1 Aug 10:03
quote:
House 1: (I mentioned this one before) 3/2 semi in nice mature neighborhood, the house is in nice shape. Seller bought it just 4 months ago and husband isn't making his half of the payments. She's asking for me to simply take over her mortgage of about $120,500, I suggested a lease/option, and she says she'll call me back next weekend after coming back from vacation.
House 1: JUST DO IT!
quote:
House 2: 3/1 100+year old house in small town a few minutes from my city. Hardwood on the mainfloor, brand new carpet on the upper two levels, freshly painted, could use with a coat of paint outside. Appraised for $130,000, willing to sell for $123,500 or less if I buy it direct (currently on MLS) there's a $75,000 1st with 3&1/2 years until renewal, 6.3% amortized over 25 years. Seller willing to hold 2nd. The real promise of this place is the potential to split the lot and sell that off for $30,000-$40,000.
House 2: Remember that you will not be able to sell off the extra lot without paying off the underlying mortgages. Can you buy it with no $$$ of your own?
quote:
House 3: 3/1 townhouse, young couple couldn't make payments and are now renting it out at cost. Eager to get it off their hands. The mortgage is $62,000 with 2 years until renewal, 6.1% over 20 years. Looking to get $74,000 (FMV $80k-$85k) Payments, taxes, insurance and condo fees come to about $700, which is $200 less than market rent. The tenant is faithful in his payments and is trying, but so far unsuccessful in qualifying to buy. I suggested that I'd buy the place with my father's credit and sell to the tenant so he doesn't have to qualify now.
House 3: If you use your father’s credit, how much will you be spending in closing costs etc? Add a few thousand in closing costs and you don’t have a lot of equity left. However, the $200 a month positive cash flow is good if you plan on keeping the property as a rental for a long period (if there isn’t a lot of deferred maintenance). Why not do a lease-purchase or subject-to?
quote:
House 4: 2/1&1/2 This is the one where the seller says they aren't desperate, but are open to ideas, the home is owned free and clear. They want at least $74,000 but FMV is about $70k. They are currently L/Ping and the tenant hasn't paid their first month of rent. The L/P is for $79,000. I thought I'd offer $60k cash or $75-$80k if they hold the entire amount, I won't mention interest, but up to 5% would keep payments acceptable.
House 4: Not motivated, asking more than FMV? $60K cash is good, but I wouldn’t offer $75-$80k on a home with FMV of only $70K. We buy houses for FMV with creative terms, but we don’t buy them for 7-15% above market.
Make some offers!
Happy Investing!
Lynn 
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