What are the options?

What are the options?

Jacksonville, FL · Member since 2016 · 7 posts · 3 votes
We need help .....to help a couple we found who will lose their house in 90 days. We'd like to help them and do a deal but I can't think of how it can happen with the way the numbers are....unless there is a solution we don't know about because we are so new to investing. I told him I would reach out to our group of colleagues to see if there was anything that could be done and I would get back to him this week either with good news or bad news. The house is in really good condition - but the bathrooms and kitchen need a makeover. 2 full baths. the house is about 1400 sq ft. The ARV is $140 to $150 after the kitchen/bath is upgraded. He currently has it listed for $160 but that's crazy given the kitchen and bath need makeup. DETAILS: Mortgage Principal balance is $108 (they mentioned payoff amount is maybe $120) they are about $10K behind on the mortage (1 year in default). They went to court last Friday and the judge ordered the $10K to be paid up or they will have to vacate the house in 90 days - they don't have the capital for the $10K they owe - and they don't have capital to move. They've been in that house since it was built. He lost his job about a year ago and couldn't find work (he says due to age). He was a truck driver for over 20 years. He is now an uber driver and drives 60 hours a week. They are 75 yrs old - they want to downsize into an RV and travel. So they need $10-15 grand to be able to do that. He also has said they would like to stay in the house if someone wants to buy it and rent it out to them. I told him a Lease back is not something that can be done. I appreciate any help you can give us!
0Reply
47 views

3 Replies

Jump to latestLatest
  • Real Estate Investor · Lake Havasu City, AZ · Member since 2015 · 72 posts · 60 votes
    10y

    @Jen Allen  Easy Peasy...    find a buyer who has a need to purchase an owner carry house.  Think self employed productive individual that is responsible and has cashflow but is not what the banks call a qualified borrower.  That person leases the house for XX.xx  payments every month.  That buyer also purchases an option for $20,000 to purchase the house for $105,000 (this would require some specific math to get exact) within the next 2 - 5 years.    The lease payments are paying on the mortgage, the sellers have their money to pay the $10k plus $10k to go RVing.

    I could get that deal done in no time.  and I live across the country..  If you are looking to make money on it you could be the buyer and rent it out for cashflow.  There are so many options here.  I love when I find those cause I know that I will be making money and solving a few peoples problems.  I call it a win win win win win.   5 winners!!  the seller, the buyer, the bank, the neighborhood, and the agent or investor (if one is involved and get compensated.

  • Jacksonville, FL · Member since 2016 · 7 posts · 3 votes
    10y
    Are you talking about a sandwich lease? We have no capital to buy. We are trying to get capital but hard to land wholesales in this sellers market!
  • Real Estate Investor · Lake Havasu City, AZ · Member since 2015 · 72 posts · 60 votes
    10y

    If you were buying the option and then leasing it I would say a sandwich lease.  You could just get the contact all set-up and then assign the contract as well.  Like I said there are so many ways.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.