Offlineok i have 2 places under contract the one in question is a single family home in a nice area. I have it under contract for what he owes the bank but the numbers are close but there is some money to be made its ARV is 90k and purchase price and rehab will cost 65k thats with my 3k fee. my buyers list sucks!!! the house would easily sell for 85k and so I think the numbers are so close that the buyers I have want more meat on the bone. below are my questions
1.how can i find more real cash buyers and title companies here dont give any info about recent sales here and my county charges by the page to look a records insane!!!!
2.MAIN QUESTION.
What other strategies can i use to make money on the house? can i do lease option or assignment of mortgage?
i need some solid advise on how to proceed???
If you have it under contract for what he owes the bank, how can you make any money? For example, if he owes $50,000 and you have it under contract for $50k, there is nothing to work with. You should have offered 30-40% under FMV minus what he owes the bank minus repairs minus your profit. Maybe I misunderstood. Could you give the actual numbers?
Shirley
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One idea would be to start calling landlords who have houses they are trying to rent out. Since they own one property, they may be interested in owning another one. If not, while you have them on the phone you can ask if they would be interested in selling their house. If so, ask if they would be willing to sell it on a land contract. If so, you have a good start towards doing a lease with the option to purchase. Work a deal with the landlord to lease the property with the option to buy it in 3 - 5 years. Offer a small upfront payment, reasonable monthly payments, and a price discounted to the ARV. Then go out and advertise for a renter who is interested in renting to own. It will probably be someone who has some money but lost their house to foreclosure and ruined their credit. They will be able to pay an upfront payment higher than you paid out and more rent than you are paying, so you pick up the difference. Then when their credit is repaired, they will be able to qualify for a loan and buy the house.
BTW, Shirley must have not understood your post correctly. Your offer price is higher than the bank loan, and even if it wasn't you can still make money. The bank would have to approve a short sale, but in your deal, you can make money since you and your buyer would be in it at a discount to the ARV.
Another possibility would be a Sub2. Depending on how much and what types of repairs are needed. If you don't have the money to do them yourself, sometimes you can find a T/B who can do them and you can give them credit for them.
Karen
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