First Potential Deal - How can I structure it?

[Scott Bottomley]

Hi guys,

This is my first post on BP so thanks in advance for taking it easy on me. I've been studying everything I can get my hands on re: wholesale real estate.

I have a motivated seller looking to exit a property and has agreed to keep her financing in place.

To complicate matters, I live in Maine and this deal is in Florida (at least it's the same coast). I know Florida has some interetsing laws regarding subject-to, agreement for deed, lease options, etc. I'm trying to figure out the best way to structure this deal. Here are the numbers:

ARV- $135-140,000

Repairs- Unknown (expect 10k but will take further research, may be higher)

Loan- $97k remaining, 30 yr fixed at 7% (high I know). Seller is $800 and change behind and is asking for additional $1,000 to move. Monthly payment is about $800. Avg area rent is 1000-1200.

My original plan was to do an agreement for sale/deed and wholesale to eiter a cash fow investor or maybe a retail buyer who's ok slowly working on the house to bring it up to true ARV.

I thought all was right with the world but in reading a lot about Florida Law specifically, I don't know if I can structure it this way. I know subject-to comes with a due on sale clause and lease option could lead to periods where I'm having to pay cash if I don't have a tenant in (sandwich LO vs wholesale/assign).

I need to get a deal under my belt to help me move forward. I know the numbers are a little thin but the motivation is there.

Any thoughts would be appreciated (especially re: these methods in Florida)

[Aaron Mazzrillo]

I need to get a deal under my belt to help me move forward. I know the numbers are a little thin but the motivation is there.

The deals you don't do are never the ones that hurt you.

That being said, I'd crumple it up and throw it in the trash. That's how I'd structure it. You're capturing no equity (after sales expenses) and no cash flow. I see zero reasons to do this deal from 2,000 miles away. I'd probably pass on it even if it was in my farm unless it needed less than $5K in rehab to get it ready for rent.