Help with my first deal

[Mike Mariotti]

Appreciate any help I can get.

I have never purchased a property directly from a seller in foreclosure that was occupied.

The Numbers

Purchase Price: $100k-$110k "$40k to pay off for the HELOC included in purchase price"

Repairs: $25,000

ARV: $175k-$185k

I am meeting with a family of 5 who inherited their mothers' home and is now in the beginning stages of foreclosure. They tell me the home is free and clear beside a $40k HELOC that was taken out. I have been to the property and met with one of the family members that is currently living in the house.

1. 1. I talked with the attorney handling the foreclosure and they told me that they would accept a payoff at a lower amount than the $40k the family is telling me that they owe. My question is do I need to have the final payoff negotiated before I have the family members sign the agreed price on the contract?

1. 2. One family member still living in the house with two adult children. They don’t want to leave and the parent has a prior eviction in the last 2 years. The adult children both work and would be moving with the parent. I am trying to help find them a place to stay but has been difficult between the income and eviction on record. I would like to avoid having to evict them if possible but also don’t know if I can find them a place to stay…