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Seller paying me on a subject to - http://www.dealmakerscafe.com Forums

Original message

Manneke

"Seller paying me on a subject to" , Mon 16 Apr 07:57

All,

I've got a house with a FMV of $40K and a mortgage of $49K. The seller offered to try and come up with $9K cash for me if I'd take the house off her hands.

I don't know if she can come up with $9K cash. Any suggestions on alternatives I could present to her, e.g., a note? I'm not sure how comfortable I would be with a note if it's not backed by something, e.g., a lien on a house.

Any thoughts would be appreciated.

Replies:

Dealmaker
Moderator

"Re(1):Seller paying me on a subject to" , Mon 16 Apr 08:06

Pass on the note.. you'll never get it.

- What are the monhtly payments?
- What would it rent for? Add 25% will it result in a positive cashflow??

Get the full 9K or as close as she can get. If it will cashflow, you may still have a deal? What is the neighborhood like??? That just sounds like a low-end house for you area?

Dealmaker

Manneke

"Re(2):Seller paying me on a subject to" , Mon 16 Apr 10:49:

Monthly payments are $635 with an 11% interest rate. It's a total dump and I'd advertise it as a fixer-upper. It's inhabitable right now. It's definitely low-end housing for my area.

To give you an idea of the area, every single person on the street is related. Every one of them. (Just don't tell any potential buyers!).

It would probably rent for $500/month if it was fixed up. I thought I would get it under contract, start marketing it as a fixer-upper for a low down payment and payments of $650/month. That might be a stretch. If I can get $9K from the seller I'd L/O it for $635/month and take a small down from the buyer.

Thoughts?

[this message was edited by Manneke on Mon 16 Apr 13:17]

Dealmaker
Moderator

"Punt" , Mon 16 Apr 19:52

No Cashflow
Over-encumbered
High Payments
Need repairs
bad area..

42 Blue Hike Hike.. PUNT!!!!!!

Dealmaker

Lynn
Moderator

"Re(2):Seller paying me on a subject to" , Mon 16 Apr 09:36

I agree with Dealmaker. The seller will never pay on the note. Ask me how I know that! See how much cash they can come up with and Do The Math to see if the deal works.

A lien would not work, because "you" will own the house.

Happy Investing!
Lynn

Knowledge is important but all the knowledge in the world is worthless without action! How many offers did "you" make today?