Posted by james on March 05, 2002 at 17:30:10:
follow up to second deal please HELP!
i have a deal, i have done the comps the appraisal is good i have brought a lender in as a partner and i want to know some things to keep in mind. first for those who have not the slightest clue about my other post:
it is a 3br 2 ba 1200sqft 2 car good cond close to all ok neighborhood appraised at $230k and the comps support this. the 1st loan was originated at $128k and is in arrears, the 1st is now at $140,983.56 the 2nd was originated at $32K. the 2nd is now at $37,477.33 both were originated on the same day 12/28/1999 the last notice of default that is shown is april 2001 per title co. and that they are not currently showing as in default. the sellers are not able to make this up and cannot qualify due to bad credit. they don't care about their credit (her own words) we can't get cashflow from a tenant/buyer at mkt value rent but that might not be an issue. i am going over to get the exact loan info from them tonite and talk over their options, i am basically going to tell them i will help them get into a new place and get the a truck to move their stuff to that new place (she says she know this might be an option). what i want to know is what options do i have, both short and long term? what i mean is if i needed cash now what would be a good amount to flip it directly to the investor? i was looking at about $10k is this too much? what about long term options ie: touch up and sell i don't see why we couldn't get $230-$240k after $5-$10 in paint carpet etc. or more if we brought in a non qualifing t/b with a Lease/Option what about a little bit of the best of both worlds a little bit of cash now and a little at close or a little bit of cash now a cashflow (if there is one) and a little cash at close? what would you do? expirenced investors please reply.
thank you in advance for all help and positive replies.
James F. Foli, Jr. & Maria Urquiaga
jfolijr@aol.com,M11sparky@aol.com