- Joined
- Mar 28, 2008
- Messages
- 29
Hi Everyone,
I have a lead that I have been negotiating with the last couple days since I left the Ron LaGrand seminar on saturday......I would sure appreciate input on what direction to take on this one....... Single family house in Hamilton ( they have lived there 20 years)
Asking price- $80,000
ARV- $120,000
Existing mortgage- $65,000 - @5% (matures feb 2012)- monthly payment $403 (not including taxes)
**Payments in arrears - 3 months **
Owner states she is very motivated.....willing to sell for mortgage owing....plus extra to clear personl debts ( that``s where she comes up with $80,000....but I think I can still negotiate lower)
1500 sq ft- 2bed/1 bath
taxes- $160/month (current)
NEEDS repairs......small leak in living room ceiling from bathroom upstairs ( small continuous small drip x 2 months... ceiling has been opened to view, but no repair attempted yet) : roof - 20 years old- some shingle missing- but no evidence of water damage to house : furnace is 18 years old- entire house needs to be painted and updated.
I am not quite sure what is the best way to purchase..... ? on contract, ?AFS, ?cash........ I am not sure what the best way is to address the fact that they will have a payout penalty if they cash out their mortgage before feb2010.
If I use the MAO calculation for a cash deal....this is what I come up with.......... $120,000x 70%- ($10,000 repairs)= $74,000
OR $120,000 x 70%- ($15,000 repairs) = $69,0000
And as for my exit strategy......I am thinking to wholesale it as "a handyman special", or should I consider to sell with owner financing, or lease option "as is" ?
I have not gone to see the house yet, nor have I checked comps....... I really think this is worth my while to pursue, but I would appreciate your thoughts before I continue .
Thanks
Sue Flanagan
I have a lead that I have been negotiating with the last couple days since I left the Ron LaGrand seminar on saturday......I would sure appreciate input on what direction to take on this one....... Single family house in Hamilton ( they have lived there 20 years)
Asking price- $80,000
ARV- $120,000
Existing mortgage- $65,000 - @5% (matures feb 2012)- monthly payment $403 (not including taxes)
**Payments in arrears - 3 months **
Owner states she is very motivated.....willing to sell for mortgage owing....plus extra to clear personl debts ( that``s where she comes up with $80,000....but I think I can still negotiate lower)
1500 sq ft- 2bed/1 bath
taxes- $160/month (current)
NEEDS repairs......small leak in living room ceiling from bathroom upstairs ( small continuous small drip x 2 months... ceiling has been opened to view, but no repair attempted yet) : roof - 20 years old- some shingle missing- but no evidence of water damage to house : furnace is 18 years old- entire house needs to be painted and updated.
I am not quite sure what is the best way to purchase..... ? on contract, ?AFS, ?cash........ I am not sure what the best way is to address the fact that they will have a payout penalty if they cash out their mortgage before feb2010.
If I use the MAO calculation for a cash deal....this is what I come up with.......... $120,000x 70%- ($10,000 repairs)= $74,000
OR $120,000 x 70%- ($15,000 repairs) = $69,0000
And as for my exit strategy......I am thinking to wholesale it as "a handyman special", or should I consider to sell with owner financing, or lease option "as is" ?
I have not gone to see the house yet, nor have I checked comps....... I really think this is worth my while to pursue, but I would appreciate your thoughts before I continue .
Thanks
Sue Flanagan