Can you help someone with no equity?

Question

I have a friend who desperately wants to sell his house. He has moved out of town and is still paying the mortgage on the property. It got me thinking about ways to help.

Home value is around 180K. Mortgage balance is the same. i think his payment is around 1200/ mo, and rent in the area might go for 1500/ mo. How could you structure a deal to help someone in this situation?

Steve Vaughan · Answer

Okeydoke.  When the information trickles in, we provide all kinds of irrelevant questions and answers.  Thanks for clearing that little tid bit up.

Brent Coombs · Answer

@Cameron Price, if he doesn't want to try to sell it through the lease-to-buy method proposed by @Brian Gibbons, he probably should just have it listed through a good local Agent. Hopefully next time he will be slower to buy, while looking for that special bargain; lesson learned...

Cameron Price · Answer

In this situation, I'm asking mostly to learn what is possible. I'm sure not buying it for 180K :)

I'm buying 30K properties and turning them into 75K properties.

Brian Gibbons · Answer

sign a lease with an option with the seller owner, with the intention to sell the paperwork or assign the deal for an assignment fee of 3% or $5000

Put big sign in the front yard

"Lease 2own

12 months

1500 a month

XXX XXX xxxx "

You postlets.com to market the property

Cameron Price · Answer

Appreciate the answers. I wish I had the ability to take that level of risk on to help a friend. I'll be there one day soon enough. I love a win-win situation, and if I could easily absorb a couple months of $1200 payments, I'd sure consider it.

Steve Vaughan · Answer

If you wanted a little more risk and more potential reward, there seems to be enough monthly spread (if the pmt is PITI) to first buy it from your friend subject to the existing financing.  He would be done with it.  You'd be on the hook for the payments, but should be covered for the most part by renting outright or to a tenant-buyer.

Would you be in a position to cover a month or two of vacancy  or handle a renter and issues associated with that @Cameron Price ?

Cameron Price · Answer

in that case, he would basically just be renting the property though, right? He wants to be done with it.

Can you help someone with no equity?

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