All Forum Posts by: Erik Jason

@Ben Wilkins and @Ron Flatt thanks so much for the feedback. This is a SFH and I'm supposed to be meeting with the seller Friday or Saturday to see the house (and discuss an offer, hopefully). I'll need to find out what they're planning to do with the proceeds of the sale. That should help with offering up some solutions as you've both suggested.

I like the multiple options route. If they're not interested in any kind of owner finance (full, or carry back 2nd), how do you persuade them to accept less than market price? Aside from saving on realtor commissions, what's the benefit to them? Not having to deal with the hassle of listing and showings? Is there anything else?

I just got a call back from a probate letter I mailed. Spoke with the son, his mother recently passed away, he just wants to sell the house because he doesn't want to be a landlord. He was just getting ready to put it up for sale as a FSBO when he got my letter, so he called me first.

I haven’t gone to see the property yet, but he says it’s in good condition; just needs cosmetic clean up (like painting). The house was built in 2000, she was the original owner, and no major repairs needed that he’s aware of (HVAC, plumbing, electrical are all good). The roof is probably in need of repair/replacement if it’s original to the house. He lives in the same area and visited her regularly, so he probably would know if there were any major problems. The house is paid for free and clear, no outstanding mortgage.

So far so good, but the problem is that he wants market price for the house. I’m not sure how he came to his price, but it’s definitely retail value. I don’t know what his plans are for the proceeds from the sale. So, I need some help with how to approach making discounted offers.

Owner financing? Are there any other options? Since there's probably not much value add here, this would likely be a buy and hold rental for me.

As it turns out, they’re not upside down on their mortgage. They actually have about $65k in equity. The problem is they’re using one credit card to pay another and continuing to accumulate debt. They’re going to list their house with a realtor since they need full market price. And, use the proceeds to pay off their $45-50k in credit card debt. Then move into something smaller that they can rent and have the landlord take care of all maintenance.

Thank you all for your feedback and suggestions. The BP community is truly AWESOME!!!

@Eugene Rogachevsky those are some of the questions I've asked them to find out. I'm trying to schedule another meeting with them in the next 1-2 weeks.

@Brett Goldsmith they are current on the mortgage right now. How does that affect the likelihood that the bank will agree to a short sale?

@Rick Pozos you're absolutely correct on all points! When bankruptcy came up in our discussions, they were very hesitant to consider it. However, I think with some financial counseling, they may realize that's the best option for them at this point. They definitely need to change their spending habits and enjoy their retirement. Not keep struggling and digging a deeper financial hole.

Thanks for all the feedback. I think I'll pass along some of the questions you mentioned @Aaron Montague. I certainly want to help them get moving in the right direction. But, from an investment perspective, it doesn't look like I'm going to be able to help them.

@James Yang that's a great idea, but I'm not sure it'll work for this couple. It sounds like they're accumulating credit card debt just trying to keep up with the mortgage and maintenance on the house. They're both in there 70s with no income other than social security and a very small pension. They have a large 5-bedroom house, so they could definitely downsize to something more manageable, but only if they can sell the house and pay off most/all of their current credit card debt.

@Aaron Montague that's a great idea. I'll look into that possibility. However, from what they've already told me, they're needing the proceeds from the sale to pay off some other credit card debt. That credit card debt is really the motivation for them needing to sell the house.

Hello BP,

I'm a novice investor just outside San Antonio, TX. I've found an older couple that needs to sell their house, but their underwater on their mortgage. The house is in very good condition, but they've refinanced the house a couple times and now owe about $50k more than market value. Are there any viable options here for an investor to help them?