Rookie Needing Help With 1st Deal

[Matt Jaramillo]

Hello Everyone,

I have recently started my journey into the real estate game about a month ago. This is my first post and I am needing help. I do not have a mentor or know anyone locally (I am in Cali - LA County) who i can turn to or ask questions for help. I have been actively making calls (i use the app PropertyRadar), putting up bandit signs, created an oncarrot website (www.unifiedcashsolutions.com), and trying to close my first deal. I am requesting help from someone with experience to see if this is a deal worth trying or if i should just keep moving.

Here is the situation. I called a motivated seller. The property just entered NOD status. The person (Person A) on the title was "given" the property to pay back a debt. The family member who gifted the property (Person B) is still currently on the loan but she is not on the title. Person A is willing to do a quitclaimdeed and put me on the title for $6,500. The property is located walking distance to a lake and i feel ARV is somewhere around $200K to 205k. It is a 2 bedroom 1 bathroom property. Person B who is on the loan still owes $143,000 on the first and has a second which is a HERO loan of $34,000. She is also currently behind $11,000 in back taxes.

My question is... since no cash investor will buy the property with such a small spread... if i take this property and assign it to a buyer.. is it a good deal? Or if I get a standard authorization to release information form signed and try to negotiate one of the loans... make the repairs... and try to sell it for $205k??

Here is a breakdown...

Quitclaim Deed to take over property

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Property Break Down:

SFR

2 Beds

1 Bath

SqFt: 623

Lot Size: 5,663

Corner Lot

Walking distance to Lake

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Property Loan(s) Break Down:

2 Loans

Primary Loan at $142,900

Second Hero Loan at $34,000

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Landscape/Repair:

Yard Maintenance $400

Minor Repairs $3,000

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Contract Break Down:

$11,000 To Back Taxes

$6,500 To Title (Property) Owner

+$5,500 Assignment Fee

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$23,000 is what my buyer would need to take the property.

I don’t see much spread for the buyer so the only thing i could think of is try to negotiate the 1st or 2nd down or try to do a short sale which would then be more attractive to the buyer.

The only problem is I have no idea how to negotiate with banks or creditors or how to do a short sale. What do you recommend i do?? I have a meeting with the owner on Wednesday and have a contractready to go in case I can make this work.

Thank you all in advance for your help!!