Ron Legrand graduate - What would you do with this deal?

[antaynguy]

Location: Calgary

ARV = 298,000 recently sold comparable
Asking 40,000 cash
1st mortgage 100,000 - monthly 888 PIT - behind 2 payments
2nd mortgage 80,000 - monthly 884 PIT - current
3rd mortage 29,000 - monthy 300 PI - current

Needs a good cleaning

Hi everyone,

I am wondering what our Legrand graduate would do with this deal?

Thanks!

Antay

 

[tonypeters]

Antay,

A couple of questions for you;

1. Have you seen the property yet?
2. Does it need ANY work?
3. Have you pulled title yet?
4. Has the Seller received any "NASTY" letters (from their lenders) yet?

Depending on the answers to those questions. You would then need to gain control of the property, bring the loans into good standing in order to STOP foreclosure proceedings and wholesale the property to an investor or end user. Only one caveat; $40k in CASH is probably too much!

Just my thoughts!

QUOTE (antay @ Nov 6 2009, 03:24 PM) Location: Calgary

ARV = 298,000 recently sold comparable
Asking 40,000 cash
1st mortgage 100,000 - monthly 888 PIT - behind 2 payments
2nd mortgage 80,000 - monthly 884 PIT - current
3rd mortage 29,000 - monthy 300 PI - current

Needs a good cleaning

Hi everyone,

I am wondering what our Legrand graduate would do with this deal?

Thanks!

Antay

 

[antaynguy]

QUOTE (tonypeters @ Nov 6 2009, 03:42 PM) Antay,

A couple of questions for you;

1. Have you seen the property yet?
2. Does it need ANY work?
3. Have you pulled title yet?
4. Has the Seller received any "NASTY" letters (from their lenders) yet?

Depending on the answers to those questions. You would then need to gain control of the property, bring the loans into good standing in order to STOP foreclosure proceedings and wholesale the property to an investor or end user. Only one caveat; $40k in CASH is probably too much!

Just my thoughts!

Hi Tony,

I have not seen the inside of the property yet. The owner is living there and he said it only needs a good cleaning. I need to go there to see for myself. Let`s assume it needs 5000 for repair to bring it up to good standing. I have pulled title and verified the mortgages. Have not asked about the nasty letter yet, but I would think they will be getting them soon...

Antay

 

[tonypeters]

Antay,Remember how I do business? I do NOT steal houses from people! With this in mind, BEFORE you leave your office chair (because I NEVER do), you need to phone the Seller back and ask them "what is the LEAST amount of cash you are willing to accept if I was able to take care of your situation for you?"

Tony`s TIP: NEVER leave your office chair to go and look at a property, unless you have a COMPELLING reason to do so!

By asking this question, you will be providing the Seller with the opportunity to tell you what "THEY" are willing to accept, NOT what "YOU" are willing to PAY! There is a BIG difference here!

That`s your NEXT step!

Let me know how you make out.

QUOTE (antay @ Nov 6 2009, 03:52 PM) Hi Tony,

I have not seen the inside of the property yet. The owner is living there and he said it only needs a good cleaning. I need to go there to see for myself. Let`s assume it needs 5000 for repair to bring it up to good standing. I have pulled title and verified the mortgages. Have not asked about the nasty letter yet, but I would think they will be getting them soon...

Antay

 

[antaynguy]

QUOTE (tonypeters @ Nov 6 2009, 04:20 PM) Antay,Remember how I do business? I do NOT steal houses from people! With this in mind, BEFORE you leave your office chair (because I NEVER do), you need to phone the Seller back and ask them "what is the LEAST amount of cash you are willing to accept if I was able to take care of your situation for you?"

Tony`s TIP: NEVER leave your office chair to go and look at a property, unless you have a COMPELLING reason to do so!

By asking this question, you will be providing the Seller with the opportunity to tell you what "THEY" are willing to accept, NOT what "YOU" are willing to PAY! There is a BIG difference here!

That`s your NEXT step!

Let me know how you make out.
Hi Tony,

Thanks for your reply, I actually did talk to the seller and ask that question about the least he would accept for his equity. His reply was 40000K. He also did mentioned he would take his equity at monthly installment.

Thanks!

Antay

 

[tonypeters]

Congratulations! You are obviously a "quick" learner and a student that was obviously "paying attention" while in class!Please do not take my humour the wrong way, as it`s just my style of teaching and the way I have been programmed!

The next thing you need to do is view the property. If you like what you see, you will then need to take "CONTROL" of the property. There are a number of ways you can do this, but you obviously can`t "get the deed", as that is NOT an option for you in Ontario, or any other part of Canada for that matter.

I am not sure what "legal" advice you have already been provided with, because I was unable to attend Ron`s event due to illness. So maybe you can provide me with a little feedback with respect to the "Ontario" specific legal advice you may or may not have been provided with?

Once I know this, you can then take the next step.

QUOTE (antay @ Nov 6 2009, 04:24 PM) Hi Tony,

Thanks for your reply, I actually did talk to the seller and ask that question about the least he would accept for his equity. His reply was 40000K. He also did mentioned he would take his equity at monthly installment.

Thanks!

Antay

 

[marcp]

Ontario??

The thread starts with Location Calgary...

Tony, would it make sense to consider replacing the 2nd and 3rd with a RRSP mortgage, interest only, to lower the monthly payment?

EDIT: Maybe not, since we`re not on title... Hmm..... dumb question I guess.

 

[antaynguy]

QUOTE (tonypeters @ Nov 6 2009, 04:43 PM) Congratulations! You are obviously a "quick" learner and a student that was obviously "paying attention" while in class!Please do not take my humour the wrong way, as it`s just my style of teaching and the way I have been programmed!

The next thing you need to do is view the property. If you like what you see, you will then need to take "CONTROL" of the property. There are a number of ways you can do this, but you obviously can`t "get the deed", as that is NOT an option for you in Ontario, or any other part of Canada for that matter.

I am not sure what "legal" advice you have already been provided with, because I was unable to attend Ron`s event due to illness. So maybe you can provide me with a little feedback with respect to the "Ontario" specific legal advice you may or may not have been provided with?

Once I know this, you can then take the next step.

Hi Tony,

This deal is in Calgary. As far as the legal matter, instead of take the deed subject to, we use AFS. Barry has provided us with a couple of legal documents for Albertan. A modified purchase contract with AFS clause and financial schedule included and a separate financial schedule for using in conjunction with the standard Purchase contract.

Thanks!

Antay

 

[RedlineBrett]

QUOTE (antay @ Nov 6 2009, 05:50 PM) Hi Tony,

This deal is in Calgary. As far as the legal matter, instead of take the deed subject to, we use AFS. Barry has provided us with a couple of legal documents for Albertan. A modified purchase contract with AFS clause and financial schedule included and a separate financial schedule for using in conjunction with the standard Purchase contract.

Thanks!

Antay

Looks to me like you are onto a good deal Antay. One of the better ones we`ve seen on here. Congrats!

If you would like me to dial in the ARV for you shoot me an email.

 

[tonypeters]

Antay,

My appologies, I just assumed the deal was in Ontario. With this in mind, do you have somebody on the ground in Calgary that can view the property and pull the documents together for you? The forms you reference will obviously work. What is you planned "exit" strategy?

QUOTE (antay @ Nov 6 2009, 04:50 PM) Hi Tony,

This deal is in Calgary. As far as the legal matter, instead of take the deed subject to, we use AFS. Barry has provided us with a couple of legal documents for Albertan. A modified purchase contract with AFS clause and financial schedule included and a separate financial schedule for using in conjunction with the standard Purchase contract.

Thanks!

Antay

 

[antaynguy]

Tony,

I am from Calgary, so I can go to see the house. As for exit strategies, I am not total sure. I don`t think I can put in a lease to own as the monthly payment is a little high. I am thinking of either re assign it or retail and sale it or wholesale it.

What are you thought?

What do other Ron Legrand graduates think?

Antay

 

[antaynguy]

Hi,

Let`s say, for this situation, I am buying via an AFS and the deal is closed. I now have control of the property but the title and mortgage is still under the seller`s name. I did a little cleaning with the property and put it back on the market. A new buyer comes in, and wanted to buy the house. Wouldn`t there be a problem, since the title is not under my name, both with the bank and the buyer`s lawyer? Do I just tell the buyer the situation so that they can bring it to the bank and lawyer. What kind of document would I provide to the buyer/buyer`s bank/buyer`s lawyer?

Thanks!

Antay

 

[shacoma]

QUOTE (antay @ Nov 8 2009, 04:51 PM) Hi,

Let`s say, for this situation, I am buying via an AFS and the deal is closed. I now have control of the property but the title and mortgage is still under the seller`s name. I did a little cleaning with the property and put it back on the market. A new buyer comes in, and wanted to buy the house. Wouldn`t there be a problem, since the title is not under my name, both with the bank and the buyer`s lawyer? Do I just tell the buyer the situation so that they can bring it to the bank and lawyer. What kind of document would I provide to the buyer/buyer`s bank/buyer`s lawyer?

Thanks!

Antay

 

[shacoma]

Hi,

To my understanding, when you do the agreement for sale you must mention that it is `assignable`. Also, in the purchase contract you state yourself as the buyer and include `or assignee`. This gives you the right to allow someone else to `take over` the contract. The seller should be made aware that you may be bringing a buyer into the deal to help get this deal done.

John