BAM! - Another two deals

Deal #1

I'm sitting at work yesterday afternoon, and my cell phone rings. I look at the caller-id and it's someone calling my toll free 866 number (it automatically rings my cell phone). I decide to let voicemail pick up as I'm in no position to answer it. They decide NOT to leave a message, but, instead, call my cell phone number directly (I have it in my greeting message for my toll free number). This time they leave a message, however, it is very short: "Hi, my name is xxxxxx. Please call me after 5:30." so, I'm not even sure if it's someone wanting to unload their house, another investor, or what.

I get home, and around 6pm I give the guy a call back. He says he's in the middle of something, apologizes, and asks if I can call back in about an hour. At 7pm I give him another call. He says he's on disability, but the payments are going to end and he won't be able to afford the mortgage payments. I ask him the usual questions: property size, beds/baths, age, any repairs, mortgage balance, payments, etc. I then tell him that I can't promise I can help, but I'll do whatever I can. I also tell him that there are a number of options he has available to him. As soon as I said that he said that he and his wife talked about it already and do NOT want to stay on the note. <sigh> I told him I'd do some more research and crunch some numbers and get back with him tonight (Wed) with an answer. His problem is that the balance on the note is greater than what the house is worth, so that REALLY limits his options. I can only think of two solutions: Sub2 and Short Sale. The problem with the Sub2 route is that he already - and specifically - said he does not want to stay on the note. The way he said it, too, it's almost as if he knew I was going to bring it up. I seriously doubt I can short sale it as he said he's current on the payments and the place needs no repairs. So, it sounds like another bust. I still need to run some numbers, but when I call him back tonight, I'll flat-out tell him his only option will be a Sub2 (if the numbers even end up working for that).

BTW, he said he got my info NOT from a postcard, NOT from a bandit sign, and NOT from someone else. He got my info from a posting I did on Craigslist last week. This is now two people that have contacted me about this one ad (the other person still hasn't responded to me yet). Interesting.

Update: After running numbers, it appears the property is overpriced by $5k and maybe even as high as $10k. So, it appears even for a Sub2 this property may not be worth it.

Deal #2

After I called the homeowner back, I got on my computer to check my email. I usually don't get on the computer much at home unless I need to look up something, but I'm glad I did last night.

I got an email from one of my loan brokers. I'm on his distribution list along with about 15-20 other people, so they got the same email. He has a deal that is in my farm area with a price that meets my criteria. He said the current homeowner is selling FSBO below market and that he already has a tenant who wants to do a lease/purchase on it. He also included pictures, and from what I can tell, the place looks really nice. I emailed him back immediately and told him that I was interested. A few minutes later, he emails me back and asks what other info I'd like. I tell him the usual: as much financial info as possible and the exact location (he only gave the city). He emails back and says he can get me the info tomorrow. So now I'm eagerly awaiting info on the property.

Update: Well this deal isn't looking good, either. The loan broker gave me some of the info I requrested, but said the L/P he had backed out. He said he could probably get a renter in, but I told him at that price, it wouldn't work. High-end rents for that area are $1,000/mo, but I'd need at least $1,200/mo just to break even. I told him if he found a L/P willing to pay at least $1,200/mo, I would consider the deal again. Such is are the ups-and-downs of REI. :-(