Potential First Deal

[Tyler Hespeler]

Good Morning All,

I am meeting for my first potential deal today and I wanted to post the details up here so I can listen to any feed back.

-It is a deal with a private seller

-Its a 2 bed 1 bath in Groton, Connecticut and the information I have gathered from the seller/Town Clerk is as follows:

-Purchased for $85k, current loan is for $104K

-There is a $6K tax lien on the property

- According to the seller the house needs minor updating

-Seller believes the loan can be assumed

-ARV is about $140K

Originally I thought there would be way more equity because he said he had been making payments for 20 years but I didn't realize he had refinanced it.

My intent would be to buy and hold and since I don’t have a lot of cash, to use seller financing. I’m discovering this wouldn’t work with such low equity, and I really don’t see there being enough meat on the bone to flip or wholesale. Do I have any other options? I would really like to help this guy out. Any feedback is greatly appreciated.

Thanks!

[Jonathan Bombaci]

So if he wants "a little more than what he owes" plus the $6k tax lien you're looking at ~ $115,000 - $120,000 on a ARV or $140,000 it's going to have to be turnkey for it to stand a chance. Even a small kitchen reno or updating could set you back $10k. Also if he's not paying his taxes he's also probably not paying his water, sewer, credit cards, or anything else he owes on. Make sure you spend money and do a good title search and get good title insurance to make sure you protect yourself.

We did a preforclosure a bit back and the outstanding water and sewer was a few thousand dollars which isn't a huge deal but definitely just something to be aware of, especially with the numbers this close.