What is this Sub-2 Referral Worth, That Has Equity?

[Burt L.]

In my marketing campaign I am coming across potential Sub-2 deals, which isn't what I am seeking as newbie, but I dont want to throw away leads that I can pass to others either.

In this scenario, the seller has said they would do a traditional sale for the amount of the debt as they don't want to be landlords anymore. The ARV is at 245K and the debt is 215K - including an adjustable first of 196K and a second of 19K. The first loan is tied to the 1 year Libor and adjusts in a couple of months. It has tenant buyers who are in the property and paying $200 per month over the rent towards a down payment, but dont have the credit now to close the deal. The agreement is cancellable with 30 days notice by either side, though the tenant/buyers would likely be unhappy.

One of the owners had a heart attack, and the spouse doesn't want to have to deal with it anymore. They had a long-term property manager for it, but that manager passed away a couple of years ago and they got the property back - as the spouse put it.

Its been suggested by a well-respected advisor that I find someone to partner with locally, put it up for sale and split the gain. Sub-2's weren't in my business plan and I don't have the contacts yet to pass deals to others that I come across.

If I offer this on a referral or "finders fee" basis, what is a reasonable value for passing it off? I don't know if I want to go off-track from my business plan, right out of the box. Experienced people likely look back and are disappointed in the deals they passed on, before adding those deal-types to their arsenal.