This lead came in on my website today. How would you handle it? Bedrooms:3 beds Bathrooms:2 baths Single Family:1,486 sq ft Lot:8,750 sqft Year Built:1990 Last Sold:Jun 2005 for $119,000 Description: SFR Vacant Condition: Good Why do you want to sell?: Get weight off my back. I cant worry about the house now How much do you owe? $125,000 Who is the lender? B of A - Select portfolio1st is about 90k second about 30k Are you behind in payments: yes - 2 years or more What is the least amount you would accept? $1 What are your goals for this property? I just want to get out from under it

Ted - If you're either trying to buy equity or cash flow at a discount, absent a strategic reason like land assemblage, why would you spend much time in this? Option the upside? Sandwich lease? Buy, strip copper and resell (the commodity)?

At the moment I have more time than money so I'll trade some of the former for the latter.

Get a real appraisal, it's a short sale. Since when did BoA start being in the real estate rental business? The next owner needs to put up a fence to keep the neighbor from using the driveway as his circle drive too. :)

Ted, Banks do not do creative deals, they discount for cash, thats it. Look for sellers that are current and want to sell, or behind a bit and will sacrifice their equity like 25% equity. That is a lead.

A deed in lieu subject to a lease may violate their arms-length transaction requirements. Every short sale regardless of lender requires the "arms-length transaction" certification that has wording like below: "The Buyers and Sellers nor their Agents have any agreements written or implied that will allow the Seller to remain in the property as renters or regain ownership of said property at any time after the execution of this short sale transaction. None of the parties shall receive any proceeds from this transaction except the sales commission." From a buyers side, I do not see any profitability here. But there could be some money to be made on the management side. What is the market rent on this property compared to the mortgage payments? You could fill the role as property manager. Find a tenant. Keep 10% of rent while they pursue a short sale. Even if you buy it subject to, how long will you have to wait to see the market recover? Too risky in my opinion.

What if... I took title to the property for $1 subject to the first and second, then get on the phone with the bank. Offer the bank a deed in lieu in exchange for a 5 year lease with purchase option? Does anyone like that idea?

short sale it, and a get a kick back.

Here are more details. Sale Date: MAY 15 2014 1st mtg balance: 95,000 2nd mtg balance 30,000 includes fees taxes: assume 2 yrs behind The seller just wants to sign it over to someone subject to that can possibly buy out the 2nd and just pay B of A.

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Updated almost 11 years ago, 04/18/2014

164
Posts: 30
Votes

Ted SchmidtPoster

Real Estate Investor
Riverside, CA

Real Estate Deal Analysis & Advice

How would you handle this deal?

Ted SchmidtPoster

Real Estate Investor
Riverside, CA

Posted April 17, 2014 13:10

This lead came in on my website today. How would you handle it?

Bedrooms:3 beds
Bathrooms:2 baths
Single Family:1,486 sq ft
Lot:8,750 sqft
Year Built:1990
Last Sold:Jun 2005 for $119,000

Description: SFR Vacant
Condition: Good
Why do you want to sell?: Get weight off my back. I cant worry about the house now
How much do you owe? $125,000
Who is the lender? B of A - Select portfolio1st is about 90k second about 30k
Are you behind in payments: yes - 2 years or more

What is the least amount you would accept? $1
What are your goals for this property? I just want to get out from under it

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