All Forum Posts by: Dustin Lyle

Thanks for the help guys.
Dustin

thanks jon, I see your point. we shouldnt really have to worry about losing on this one. we already have 2 separate people wanting to lease portions of the space and our cost is well more than covered. One of the people said they didn't know the building was for sale OR lease... said he would love to buy it if we ever go to selling.

You make some great points LindaTx.. Thank you.
Dustin

I dont think this deal is going to get as far as contract... the seller said he's not taking a loss.... and is convinced there is no way possible for a bank to take less than what principle is owed. I assured him it happens all the time... But I do live in Kentucky where old ignorance THRIVES. As much as I try, some of the older folks around here cant learn new tricks. Thanks for the help though... PS I still do need to get deeper into the short sale strategy, wheres the best place for that info without bothering people with my beginner level questions. Not that I don't appreciate all the help I've received thus far.
Thanks again,
Dustin

My cousin and I are in the process of putting a 12,000 sq/ft warehouse under contract... My question is... If we went the route to get an ARV loan, Who would say what the ARV would be? now I know the answer is probably going to be the bank's appraiser, BUT, a warehouse is not something our local banks are appraising very often, As a matter of fact.... the selling agent had NO Comps within 5 miles sold within 5 YEARS! Its a steel building with block walls and the cost to build the building today is 500K+... would that be something the bank would go off of? The man that's selling the building was the original owner/builder in the early 90s. Selling @ 185K.

Im sure he will... Im gonna run it by him this afternoon and let you know.

The Mortgage is through Chase, Over the course of 10 years he has paid them 57900... 18000 of which was principle.

Im assuming this question has been beat into the ground but I cant seem to find it yet so here goes...

(THE STORY)
The HO Purchased a home 10 years ago for 88K, 2 Years ago (after watching Flip this House) it was semi-gutted in prep for a rehab BEFORE getting an appraisal to refi to fund the rehab. tisk. tisk. The HO was unable to fund the rehab thus leaving the house unlivable. Loan balance is 70K. House has been on the market for 6 months at least, first At 86.9k, now at 78.9k. Word from my appraiser on drive-by and comps as well as the agents Competitive Market Analysis puts this house between 138k and 150k IF REHABBED. A walk-through with my contractors puts this house in supreme condition with 40K.

(THE QUESTIONS)
1. If I can substantiate reasoning to his bank that selling short on the house will still be profitable to them, and only help them, is there a way for them to "write off" the loss... without the current HO still being liable for the difference?

2. Is it at all possible to purchase a mortgage, that's in GOOD standing, from a bank for a discount on principle? IE offering the bank 55K for the 70K note, settling at or around 60K, then as the note holder, me personally giving him the opportunity to walk away free and clear?

Mr. Holdman, you are good! lol, it seems I have much to learn.. But maybe just maybe, tomorrow when I meet with the property owner and tell him im thinking its not a good investment for me, He might just all of a sudden get desperate.... But who knows. But it seems I have a new mission... I really have to educate myself on this cashflow landlord thing.. thanks for your help jon.

Thank you everyone!
I think Im gonna feel right at home here:)