First Offer

[TMCG]

I made it today:

Asking Price:
349,900 - Flexible - house in good neighborhood - comps - 399K
Needs alot of work, but basically it's laziness that has let this house go, but it is in very good shape, foundation-wise, structure good, nice yard (once it's cared for), hard woods throughout
3 br, 1.5 bath, raised ranch, EIK, formal dining, 1 car attached garage

Offer:  265,900

Seller hold 2nd mortgage note = 53,180
@11.75% for 12 months

Seller to pay Buyer
Repair Credits at Closing  =       9306.50
[3.5% of Purchase Price]

Projected ARV  =                    370,000

Expenses:
Debt Service                          265,900
Closing Costs                          14,000
Repairs                                      5,000 (14,306 total -credits-)
*Holding Costs                         12,193

Gross Profit                               72,907

Net Profit                                   51,034


*Holding Costs based on Interest Only Loans for 1st and 2nd mortgages - 1st @ 8%  2nd @11.75%
For 6 months
1st - 1511.47 X 6 mos
2nd - 520.72  X 6 mos
Total = 12,193.14

Taxes - I figured that at closing, 6 mos will go in Escrow, so I will not have to worry about paying them during my holding period (that's if it takes 6 months to sell).

that's it.
Seller gets - 195,436.50 at Closing
Seller gets -   53,180.00 2nd Mortgage Note @ 11.75%

[2nd note to be paid in full in 1 year - no prepayment penalty]

[TMCG]

forgot to mention, closing costs are rolled into first mortgage.

So 1st mortgage looks like this:

212,720 + 14000 = 226,720

Interest Only Loan for whatever, 5 years - 30 year fixed.

[TMCG]

we are in negotiation now...

 :

no one has responded...    ???

in looking at this, i know that i've missed alot...