Low Equity but highly motivated seller

[Zach Kirkton]

Hello All! I’m looking for some advice on a lead. The seller is very motivated and says he’s been trying to sell for years. The property is vacant and he is behind one years taxes 4K. He has a loan open for 121k and needs about 30-40k worth of work and comps are only 150k. Any ideas on how to make this deal work with any strategy?

[Jay Hinrichs]

Originally posted by @JD Martin:

Yes. Wait for the seller to lose in in foreclosure and pick it up for what it's really worth. The guy is completely upside down on this and is "motivated" because he needs someone to suck up his losses.

If he really wants to sell it, he needs to put some cash in the deal. You can structure that however you want, but anything you don't get on the day of closing I predict you will never see. 

OR try to get him to do a short sale if he can prove they have no money and are in default.. but if the loan is current then

its just one of those deals that will turn into a zombie house..  no equity in a non or very little appreciation market is not a good strategy in my humble opinion.. if its in a hot area where you really think rents or values will go up.. then no equity slide in and do the deal can make more sense.