Lateral thinking needed

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jabjam2004
Member
@jabjam2004
Join Date: 2004
Post Count: 22
October 29, 2004 - 5:39 am
The scenario is a house for sale with very stressed vendor who MUST sell for financial reasons. She wants shortest settlement and possibly rent back. The agent says he thinks (in other words won’t tell me exactly) she needs $430K, and may accept this. Agent says bank’s valued at $505K. I’ve offered $400 to test the waters with 30 day settlement and no contingencies other than the usual building and pest. I’m considering onselling in the short term, say 6 months, to realise capital gain .
Any ideas on structuring the deal? I’ve considered assurances of rent fixed at slightly less than market price for 12 months (say $270 instead of the agent’s estimate of $280-300), reducing the settlement to 14 days, paying her the extra bit more (ie$30,000) over a 2 year period ….
What does anyone else think? I’d love to hear all ideas please.
Jennifer
crj
Participant
@crj
Join Date: 2004
Post Count: 618
October 29, 2004 - 6:39 am
Your figures seem a bit skinny
eg pay $430, plus stamp duty etc on purchase, loss between rent and expenses while holding, commission & expenses on sale
if you know you can achieve $505 it can work, but what if the sale takes longer or the ‘bank’s value’ is optimistic
1Winner
Participant
@1winner
Join Date: 2004
Post Count: 477
October 29, 2004 - 6:59 am
Hi Jennifer, I hope you crunched the numbers correctly and get a good deal.
On an different topic, you say that “…The agent says he thinks (in other words won’t tell me exactly) she needs $430K…”
Can you tell me who this agent is so I will never use him ever to sell one of my properties?[angry2]
Makes you wonder who they work for besides themselvs doesn’t it?[confused2]
May God prosper you always.[biggrin]
Marc
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
October 30, 2004 - 9:56 am
Firstly, never beleive an agent@!
And secondly, if you are goign for a 14 days settlement, I hope you are paying cash. It would be very hard for a ‘normal’ bank to have the finance ready in time.
Terryw
Discover Home Loans
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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