All Forum Posts by: Christopher Gravillis

Thank you both for your quick responses, I am relatively new to this business so I appreciate any help I can get.

With Regards to structuring the deal my main query was about how I decide what rent this guy should pay? I wasnt sure if it was realistic to expect to make much if any profit on the rent or would it be a case whereby my profits would be made at the back end if he excercises the option. Here's what I was thinking.

Bearing in mind a property Value of $127K his mortgage payments are $600 per month.

If the property is worth $127K purchase it at around $88K less the cost of any repairs.

Rent it back to him at say $650 then give him the option to buy it back back from me two years later at around $118K.

This would give me a back end profit of $30k + $50 Per month on the rent.

Any ideas/formulas on how to decide that the terms of an option agreement?? Obviously I want to make a good return for my effort but also want it to be a fair deal for him.

Wheatie - The property is based in Florida, I think he may have bad credit because he had a truck repossessed just a few years ago. To be honest I would much rather just purchase the property and have him move out but he is really attached to the place and he feels his parents would have wanted him to stay there. If I do a leaseback I would speak to an attorney for advice on what you said.

At the moment I haven't decided anything with regards to what deal I do here I'm just looking for a few ideas/advice. I might just tell him to contact his lender to work out a payment plan then take it from there. I may even just pass on this for a finders fee.

What does HELOC mean?

Hello Readers

I have come across a potential deal & was wondering if anybody could help me with this please? The homeowner seems very keen to work with me & I would love to be able to offer him a solution that would suit us both.

For the purpose of protecting the homeowners identity I have named him Bob!!!

A Summary of Bobs Situation

• Bobs Father Past away in February

• Bob has been made executor of the estate

• Bob is not quite sure what he needs to do in this role

• He has been left a property which is in foreclosure 3 months behind on Mortgage payments

• Approximate property value $127,000

• Approximately $63,000 is owed on the property

• The property has approximately $63,000 dollars equity.

• Mortgage payments are approximately $600

• Has been unable to catch up on his mortgage payments because he had to give up work to look after his father when he was ill.

• He is now back in work and feels that if he hadn’t fallen so far behind he wouldn’t have a problem in affording the mortgage.

• Estate/inheritance taxes may not have been paid yet

• I think that he will owe approximately $13720 in inheritance tax.

• May need to produce a tax return for Estate taxes

• Has been left a nephew who is 14 years old

• Doesn’t have the money to pay for legal services up front and would need the costs to be charged to be taken from the estate

Bob would prefer to stay in the property but would be prepared to move out if absolutely necessary.

I’m thinking that I should present Bob with 2 offers.

One would be whereby I offer to purchase his equity & have him move out.

The other offer would be to purchase the property and rent it back to him with the option to buy it back in a couple of years. Could anybody give me any ideas of how I could structure a deal like this???? :D

Hello Everyone

My name is Chris I'm from London in the UK & I'm new to investing in the States.

I'm currently trying to get started in the Pre-foreclosure business & I'm hoping to start investing the Tampa Bay area as well as the Palm Beach areas.

I look forward to interacting with you all & I hope that I can be of assistance to you all at some point in the future!!!!

:D

Hello I have just started investing in Hillsborough County Florida.

I'm expecting to work on at least 6 properties in the next 6 months. I need someone who will charge reasonable rates and can provide good referances.

I don't live in the area so I'm looking for someone that is extremely trust worthy & reliable. I am willing to pay fair prices for the services of the right person.

If you think that you can help me please get in touch.

Chris...