Before & After "Subject To" deal - rehab project in Cobb Co, GA!

[Regina Sitterley]

The owner of this house had inherited it and was trying to keep up with the mortgage while doing the renovations himself.  This was difficult for him, as it is for many homeowners, and he fell behind. We got in touch with him through a referral from another seller we had been in touch with.  The best deal we could work out, in order to get the seller the most money possible looked like this:

•  $1,500 bring the mortgage current
•  $55,000 purchase the house subject to the existing mortgage (includes closing costs)
• $15,000 cash to seller at time of 2nd closing
• $30,000 renovations (plus holding costs)
• $10,000 2nd closing costs
  
  • Total cost: $111,500
• Sold for $150,000
  
  • PROFIT: $38,5000