[Tim Myers]

Tim Myers

I currently have a desperate seller that is making 2 house payments and the house is vacant that i am looking at. It is on 3.5 acres, 3200 sq ft, hardwood floors, inground pool, pool house, 2 story workshop, and 2 car garage. it is a beautiful home. the value of the house is around 310,000 to 320,000. I have them down to 242,000 right now. they are not behind in payments but they are getting there. My question is, should i get a pure option on this home at 242,000. then try to sell it to owner occupant for more like 280,000. that would give the owner occupant a good deal as well. how do i find a buyer for this home? Can i put it on the market? do an open house? advertise on my own? Also, what is a round robin auction? After i find my buyer, most lenders will not fund an assignment fee. how do i get around that? one last thing, if i have to do a double close will i have to come up with the money first then close with my buyer.sorry i have so many questions. thanks for the help.

[Anonymous]

Anonymous

Tim

Whew — that’s a lot of questions.

Let’s start at the beginning.

While the $242,500 may sound like a great deal, it is really only about 25% below market.

What is the mortgage balance? What are the monthly payments? What is the average DOM in your area? How much competititon is there for this price in thie neighborhood? What are the last 5 sales in this neighborhood? ($242,000 may be too high)

If the seller needs a FAST solution, then finding a buyer to get a new loan may not be it!

Will the sellers allow someone to give them payment relief FAST? If so, you could either do a highest bidder sale for the down payment to find a buyer or master lease.

You should try to get them down more -them get an option. But you need to know your exit strategy before you can get the option – unless the seller say ” we will do anything – then you can include all possible exit strategies.

Then your option would be structured to accommodate the exit strategy.

You’ll need to include in your option agreement that you have the right to market the property, do an open houses, advertise, place signs, enter the house, etc

YOu can get paid to release your contract with the seller and get paid that way if your buyer is getting a new loan.

If you do a doulble close, you will not need to come to close with the money.

Let us know how it turns out.

Jackie

[Tim Myers]

Tim Myers

thanks for the help jackie.
i think I am going to go the route of highest bidder sale or find someone to do a lease option on the property for them and just keep the down payment they make. what would you do in this situation? they are open to anything, they just need to get out of the payments.