Need advice on a deal

[Mike Provencher]

Bank owned property. 

Owner's heirs just received letter from bank that property will go to sale on courthouse in the next month. 

Bank has paid $17,500 in property taxes. 

Mortgage balance approx $106,000

Market value approx $250,000

Property has been vacant for three years but is in good condition. 

What kind of deal can I put together on that? 

Thanks, 
Mike

[Monique Pett]

Hey Mike! 

So what does good condition mean? Any rehab? Sounds like you have a sweet deal depending on your exit strategy. Looking to buy and hold, BRRRR, or flip?

Had a similar deal and this is what I would recommend. 

1. Make sure you have someone go over and get an estimate of the house. 

2. Work out a deal with the heirs. - In this, make sure it is something that hits their pain point as well. Is it them just breaking even? Or are they willing to loose a little bit on the home if they sell? I have had homes where I was able to pay the property taxes and seller finance the deal, or sub to it for a flip. If that is an option, take it! 

If not- make sure you address their needs. Make sure the mortgage is actually $106k add the taxes and roll with it, if that's a good deal. Maybe give them an extra 1-2k to make them happy? 

I am huge proponent of making sure it makes sense to both parties and if there is a way for you to take the deal with little to no money down do it. 

If you have more questions, PM me :)