Home › Forums › General › Deal Makers -Ground Partner Request – Investor Needs – EHT Opportunities › NEED RB for Vallejo, California property
March 3, 2010 at 6:37 pm #6134
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.
TonyMarch 3, 2010 at 6:56 pm #31555
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,March 3, 2010 at 7:27 pm #31556
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.March 3, 2010 at 7:28 pm #31557
NULLMemberMarch 3, 2010 at 7:36 pm #31558
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.March 3, 2010 at 7:39 pm #31559
areyes……….. Thanks for the tips.
Homesavers …………. I don’t know the rents in the area. I’ll find out.March 3, 2010 at 7:54 pm #31560
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.
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.March 3, 2010 at 8:18 pm #31561
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.March 3, 2010 at 9:18 pm #31562
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.March 4, 2010 at 3:17 pm #31563
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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