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NEED RB for Vallejo, California property

This topic contains 8 replies, has 0 voices, and was last updated by Avatar of mrastegari mrastegari 9 years, 8 months ago.

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  • #6134
    Avatar of mrastegari
    mrastegari
    Member

    Bought for $750k; 2005
    Loan is $596 (First 566 + Second Heloc 30)
    Actual value is $350-400K
    Payment now is approx $2600 for Interest only

    In august 2010, it will be $3050 fully amortized (no tax or insurance)

    Owner is current, no late payments

    Any creative options or other suggestions would greatly be appreciated.

    Thanks
    Tony

    #31555
    Avatar of sstanton
    sstanton
    Member

    Tony, I sort of thinking out loud here and not sure if this is a good way or not.

    My first stumbling block is; How would you make money on this? I see some up front profit.

    Have you approached the seller on the possibility that he may have to pay part of that payment (gain some cash flow)? Would the seller be open to a short sale (gain some back end profit, if answer to question below is yes)?

    The other question would be a Bill question (Are you reading this Bill?) If the RB resides there for 3 years, can we short sale then and have the RB purchase the short sale property?

    Just some food for thought, let’s see where it goes,

    #31556
    Avatar of areyes
    areyes
    Member

    do a tax lease where the RB doesn’t have the right to purchase or resell.

    this way you dont even have to worry about the negative equity.

    #31557
    Avatar of homesavers
    NULL
    Member

    @mrastegari wrote:

    In august 2010, it will be $3050 fully amortized (no tax or insurance)

    What is the market rent in that area? I can look for RB’s. Send me your contact info to homesaversua@gmail.com. I have a rehab guy in the area that knows people.

    #31558
    Avatar of mrastegari
    mrastegari
    Member

    STU,

    You wrote………..” The other question would be a Bill question (Are you reading this Bill?) If the RB resides there for 3 years, can we short sale then and have the RB purchase the short sale property?”

    Can you elaborate, I am lost. Thanks.

    #31559
    Avatar of mrastegari
    mrastegari
    Member

    areyes……….. Thanks for the tips.

    Homesavers …………. I don’t know the rents in the area. I’ll find out.

    #31560
    Avatar of sstanton
    sstanton
    Member

    Alvin, Don,

    Do you really think you will get someone to pay about $3,600/mo (est. PITI) on a home worth 350-400? And that is without any cash flow.

    One of my last NEOs was a home where the MAV was set at $395K. We had the payments at $2800 (that was very little cash flow to me). I had the luxury of a RE Broker and his entire office looking for the RB. They actually sold the property just about the time the NEO expired.

    Tony,

    You have a property worth $350-400 owing near $600K. I really do not believe that they value of this property would go up $200K in three years. And the loans will not be paid down much, but, using NARSCO, you could short sale (if that is possible) and get a piece of that action too. Again, I am just thinking out loud, I never tried this.

    #31561
    Avatar of areyes
    areyes
    Member

    it makes no sense to short sale a property that is CURRENT.

    also you wouldnt want to purposely tell the seller to go behind on their payments just to do a short sale. that has to be their call.

    i agree this property wont cash flow but it has a chance to break even if they did a tax lease and get some money up front for that benefit.

    #31562
    Avatar of sstanton
    sstanton
    Member

    Alvin, that is true, that why thinking out loud is usually not a good idea. But, I do know that a friend of mine was current on his property and tried to short sale it anyway. But, in the end, he never found a buyer. He did fall behind and ended up doing a “deed in lieu of foreclosure”.

    I would never, never suggest a person to stop making payments.

    #31563
    Avatar of homesavers
    NULL
    Member

    No. I do not think it realistic to expect any RB to pay much more than market rent. The tax lease is a good idea to maybe push it up 10-20 percent I would think. However, a house that is 200K underwater is a hard sell to a potential RB. You have to get close to market rent because they have to do that anyway. Seller kicking in every month is another option in theory.
    A short sale is an option but only if the owner is willing to take a hit on his credit, State Tax liability and if he has other assets those could be attached.
    Why don’t you have his mortgage docs reviewed by an Attorney? If he has a predatory loan then he could possibly file a case against them. Costly, but I have structured a way, with the Attorneys I have, to pay for it without any out of pocket from the homeowner.

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