Our borrowers moved in last weekend and their down payment mostly paid for the closing costs. The remaining amount was covered by me and will be reimbursed as their payments come in. The first monthly payment is not due until Dec 1 as per our sales agreement and we’ll then sell the note in March. This should turn out to be another great return as the projected purchase price of the loan will be around $19,500. This will be in addition to the 3k as down payment and the 1300 received in monthly payments. Not bad for a purchase price of only 12k. Once expenses are taken out this will yield an approx 80% total return.
I just sent back a counter to an offer for seller financing on this house. The buyer will pay a $3000 down payment, and start payments Jan 1 of $360/m and we will be able to sell the loan in early April for between 19-21k. All in after expenses the take home will be right around 20k and we paid 12k so this will be a great return in just a few months.
Nathan spoke with realtor last week and she agreed that seller financing would bring the best return. She is modifying the listing and posting on Craigslist this week.
I talked to the assistant of our realtor since our guy was in the hospital. He’s home now and is doing well after an adjustment was needed for his defibrillator. She mentioned that she thinks 29900 is a bit high and that it is more of a rental neighborhood. We could look at selling the home on terms or Chad had mentioned you may be interested in keeping this house as a rental for your portfolio.
After getting the house cleaned out of all the trash that was left over the house is now listed and can be seen here http://galmls.paragonrels.com/publink/default.aspx?GUID=4a852c07-514e-447c-a979-40cb48eca70e&Report=Yes
There was a misunderstanding with the realtor after he had gone to see the property and was waiting for me to give him the go ahead to clean out the leftover trash. There is not too much mess but a clean house will show much better and for the $500 expense I think it’s well worth it. The cleanout will be later this week and then we’ll list the property.
The house is now listed and the realtor sent me pictures of the house over the weekend. I have not been able to open the pictures however and will get them loaded to dropbox as soon as I’m able. By his report though the house seems to be in good shape. We’ll leave it on the market for 2-3 weeks and then if nothing has happened I’ll have him offer seller financing before we talk about lowering the price.
Originally it looked like we were going to have to evict the occupants of the house although in AL it’s called an ejectment which takes a bit longer. To help get around this I sent out our realtor to offer cash for keys and when he got there the occupants had moved out. We are now moving to change the locks and list the property, both of which will be done this weekend.
Now that I have the collateral for Cedar I will investigate what is needed to evict the occupant since the contract has been cancelled.
I found out that the loan for 325 Cedar Cir is already terminated but people are still living in the house. Once I’ve had a chance to review what the people actually signed I’ll move ahead with whatever eviction provisions are in the paperwork.
New purchases for 325 Cedar Cir in Adamsville AL and 3539 Judy St in Columbia SC closed last week on Thursday Apr 28. Collateral and servicing transfer will now commence and I expect both to be done before the end of May.
Date of Purchase