Is it true that these ppl only buy the houses for about 50-80% market value?
2007-12-19 09:38:17 · 4 answers · asked by josh d 1 in Business & Finance ➔ Renting & Real Estate
two sides to that coin..
some are legitimate and will pay about 40-50% of value with real money.
some have no money and try to do sideways upside-down option contracts claiming they will pay you "x" amount of dollars at a future date and assume your mortgage balance. They resell them as "owner finance" and "rent to own" ,never forward any payments to you or the mortgage. Your as the head of the pyramid get foreclosed on with tenants that are impossible to get rid of and a destroyed home because they want the 8-10k down and payments they made back but your "no money" investor is gone into the dust faster than he came.
2007-12-19 23:26:56 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Yes it's about 50-60% though, not 80% and remember it's MARKET value. Right now, there is a fire sale on throughout the US on buying houses.
If your house needs repairs, it could be less than 50% of the market value by the way--they want to get in, clean it up, and move it out and if they have to spend time fixing it up, they don't want to take a hit economically. (Time IS money.)
2007-12-19 17:45:15 · answer #2 · answered by heyteach 6 · 0⤊ 0⤋
Yes, it is quite true. That's how they make their money. They pay less than value for the property, take it off the seller's hands, and then do any work needed, and toss it back on the market for what it is REALLY worth.
2007-12-19 17:43:39 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
No, it is closer to 40%.
2007-12-19 17:45:06 · answer #4 · answered by Anonymous · 1⤊ 0⤋