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Hello all,
Deal crunching question for you seasoned investors!
We are talking to a seller who is in a hurry to leave town. They have a huge new gorgeous home retail value 280k. They are open to selling it at 235k cash or 245k terms. The % discount isn’t great but the $ spread is.The house was built in 2009, 5 bd 3bth 3200 sq foot home move in ready.
They have a mortgage in place – 160k balance, total payments PITI 1500/mo currently rented for 2100, but tenants are leaving because they knew they wanted to sell.The terms deal was an option with 20k option fee, take over payments and pay the remainder when sold. They really want 20% down as the option fee but I think we can negotiate 20k.
It seems we would have to find an end user to sell to. I can lock up the contract and assign, but probably not enough meat on the bone for a wholesale cash deal. Maybe a highest bidder sale?
Maybe lock up the option to close one of both ways and then look to sell/sandwich the option or try to close with the assignment?Thoughts? feedback?
Maybe someone’s IRA would like to put up the funds for that option?
Thank you! always a pleasure
I think this is the perfect candidate for HBS for down payment. Why not take anything over 20K down as your profit. I would sell on terms closer to full retail. Carve out the difference of the 245K and end sales price for additional profit. I would also take a 10% undivided interest in the wrap mortgage. I would service the note and take you monthly 10%.
Don WedeIf you need help putting it together call, text, or e mail 815-252-3808 [email protected]
Don Wede
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