Nathan: Okay, so let me let me call Nate, Nate’s might one of my final buyers that I want to call about this deal. Tell him the situation got my boy Nate worth and call. Let’s give him a shout. Nate, What’s up, brother?
Nate: How you doing? Man?
Nathan: Dude, I’m just grinding away.
Nate: What do you have to do trying to make some money in this market?
Nathan: Dude, it’s rough. I mean, the only way you’re gonna make money is if you can find a steal of a deal, you know?
Nate: Yeah, thanks, I’m gonna have to basically hand you the keys.
Nathan: Well, I mean, that might be the situation with this one that we have in Ogden. I mean, I’ve talked to so many people, and everyone’s just like, we’re not paying, basically, they’re not giving her what she wants. And I’m just having to call her and just be like, hey, look, looks like you ain’t getting pretty much anything for this thing. Unless you can either let it go to pre foreclosure or no one’s gonna get you what you want. So I was just calling you to see to kind of circle back, I let Utah house buyers have a hack at it. You know, they brought someone in that was willing to do terms, but then they want to all the money that they gave down for her to pay off, you know, the solar for her to catch up what was behind and she was gonna walk away with nothing anyway, so it didn’t even make sense. So I kind of wanted to see if you’re still interested in that and maybe see if we can work, structure it where it makes sense for you and her. But yeah, that’s what I was calling.
Nate: Cool. I’ve got your text open with the numbers you sent.
Nathan: Yeah, so 181 is what she’s in it for, where she’s behind, it covers what she’s behind the grant and the solar 181. If you were to take over the payments, that would be like, you’d have to catch it up. So that’s 12 and then make the payments, and then she would want something upfront, which you know, probably not gonna happen, not that much down At least it almost seems to me like if you can just get it for like 195 200 1000s 205 something and make sure the numbers make sense. That might be her best option. Just a cash.
Nate: I agree with that.
Nathan: So I was talking to some other guy and he said that he rehabbed he put a rehab budget of 76k for the flip. What what did you do you remember what rehab you had it at?
Nate: Oh, man. Yeah, it depends. I mean, it’s positive for math for sure.
Nate: I got five grand and math remediation that my goal was to replace the windows that are broken, do carpet and paint and try to get out of it. And –
Nathan: just a light –
Nate: resell finance. Yeah. So that puts me at 42 grand for paint carpet, and the windows plus the math, but it could easily balloon out of that.
Nathan: So you got 42 What would you try to sell it for? You would wrap it right?
Nathan: Okay, so what would you sell it for And wrap?
Nate: 300 I think it’s reasonable.
Nathan: And how much would you want down?
Nate: I would try to sell it and get someone to bring 10% down.
Nathan: Okay, so 30 Okay, that wouldn’t even get all your money out, though.
Nathan: But your Are you okay with that?
Nate: I mean, it’s not ideal, but it’s fine.
Nathan: Okay, so if you sold it someone in the rap, you wouldn’t have to pay commissions, right?
Nate: I probably would probably find the buyer through the MLS.
Nathan: So what do you put on commissions for when you do that, like,
Nate: probably 3%. So they bring 33% goes out to the agents. So that’s nine grand whether you get paid up front or on the back end, we got to factor that in. And whatever’s left over is a partial recoup of my initial investment.
Nathan: And then you have the what do you have for closing costs? Do you do
Nate: 7%? It’s probably going to be less than that, because I’m gonna pay the closing costs now. So if I use like GT title, then they’re gonna cut me a break on the on the closing costs when I get out of there.
Nathan: Okay, so what balloon would you do with someone if you sold to them on a wrap?
Nate: Probably, i’d love to do a one year but probably three is what people would actually take
Nate: and that’s where she could potentially get paid out in three years.
Nathan: Yeah, it depends like do we do we give her all her equity now? Or did she get equity on the back end? I would really, really prefer to give her equity on the back end.
Nate: Right. Yeah. It’s just a tough one to negotiate with her. Right? Because you go from someone thinking they’re getting 50k to it’s like, this thing might just be underwater here.
Nathan: Yeah it could be
Nathan: So and their mortgage payment is 889.
Nate: That’s great. I mean, that’s the only thing that makes this deal work. Right?
Nathan: Right. So what would the purchase price be where that would make sense for you? Because I’m looking at the numbers. So if you bought it for me at 200, we looked at these numbers. I might be doing wrong versus $35,000 profit, potentially. That’s overtime, and you’d cashflow as well.
Nate: Yeah, yeah. And that’s what I’m looking for is the positive cash flow every month.
Nathan: So the 42 is did you include her catching it up?
Nate: Uh, no.
Nathan: Okay, so that’s not even including caches. Great. Okay, so we’d have to throw that in there as well. Right?
Nate: Yeah. In terms of cash up front.
Nathan: Yeah, it’s not, it’s not very juicy. Once you catch it, and then the solar, you’d also have to pay that off, too, right? Unless you maybe it’s assumable. So maybe the person you wrap it to could assume it. I don’t know if that, if that makes sense.
Nate: So what I want to try to do is keep it in the seller’s name, but we’ll make the payments. And then when I wrap it, the new buyer will still make the payments. So we’re all making payments against the solar, no one’s paying it off. That’s what I’d like to do. If she insists that we pay it off. We can do that. But –
Nathan: Yeah, there’s no insisting to pay it off. Like, that’s, that’s not gonna happen. Cuz there’s not a lot of leverage here. I mean, I think she might come to the point where she’s like, I’m about to let this mug go. Yeah, so I’m crunching the numbers. But what do you think? And if we were able to make this work with with catching it up doing all this, like, where would you need to be where I can go tell her?
Nate: I’d be excited about that deal. 200.
Nathan: I guess the problem, even at 200 Is she wouldn’t really get anything upfront, right?
Nate: No, she really wouldn’t I mean, I guess I’m thinking okay, what, what is my 13 grand give me because, okay, purchase price of 200. I pay 13 grand cycli. I’m thinking in my head. Okay. So now I owe 187. And I’ll make payments on the 187. Or I can make payments on the original payment. Either way, I guess that needs to be clarified. If I’m paying on 187, we pay the underlying mortgage and the solar out of that she would actually get some monthly cash flow, right? Because I’d be paying her a little bit above her mortgages, right? or I just pay the loans direct, and whatever the difference is between her mortgage stuff. And what I owe her is basically a 0% loan and she gets paid off when I sell the house.
Nathan: Yeah, that’s what was my thought I wasn’t thinking you were going to be paying off the 187. Right, I was considering you paying, you know, catching it up taking over the mortgage payment of 89. And then, you know, hopefully, just the solar stays in place and the person you wrap to can take over it. And then the grant will go away within the three years of you having you know, wrapped to someone else.
Nathan: I’ve come to the point where I’m like, Dude, I just want to help this lady because she’s about to lose this mug.
Nate: Are you gonna get paid though?
Nathan: Dude, sometimes I don’t even really care if I get paid. I know, I should get paid. But a part of me is like –
Nate: You need to get paid on this for so many reasons, too.
Nathan: But yeah, I just don’t want to get defeated. You know, like, I don’t want to be like, Oh, dude, I couldn’t figure something out. Because I know there’s something we can figure it out. there has to be
Nate: You know a solar payment is?
Nathan: It’s 9167 for the solar payment. And it’s a third. It’s a 30 year though.
Nate: That’s fine. I don’t I don’t really care what the balances
Nathan: To be real. I mean, I think solar man if you don’t have the money to pay it, like you’re screwed like that. lien is a lien on your house. It’s uh, you know, you ain’t getting away from it.
Nate: Yeah, you’re exactly right. I’m in for 200. Okay. I’d rather not pay or anything now if we got to pay or something. 200 I mean, I could pay her three grand.
Nathan: Sure. She’ll love that brother.
Nate: I mean, something.
Nathan: She’s hoping for 50 now, like, how’s the slick? 3k for you?
Nathan: Oh my gosh
Nate: Does she understand the concept of like, if we default she gets the house back in?
Nathan: Yes, yes. But I don’t even think that’s a consideration right now. I just think she just she ain’t even thinking that that forehead right?
Nate: Yeah. Okay, so you’re laughing that makes for three grands on that one.
Nathan: I’m not laughing at you. I’m laughing at the situation of like, you know, she was at like, 50k. And now you know, I’m about to call her and say how’s 3k?
Nathan: So we live for though, right? So what we do?
Nate: Yeah. Let me look at one thing here. Before I start committing myself to –
Nathan: Yeah, man, I want you to feel super solid about this.
Nate: No, no, it’s not. The trick on this is the free money right? It’s the Delta 2.99% That’s the way
Nathan: Yeah, I thought the play would be like a rental but it doesn’t it doesn’t make sense as a rental because there’s just way too much money to put into to rent something out to make what like 600 bucks a month.
Nate: Yeah, it’s a nice backup if you can’t sell it.
Nate: Okay, let’s see. I’m just looking to see what the cheapest MF are in Ogden.
Nathan: What is it?
Nate: One on here for 190 Oh, no. I was hoping to be the cheapest house on the market.
Nathan: Well, that one and 190 What is it like 500 square feet or what?
Nate: Yes, it is. Okay. Okay, so one right here. Some more for 1100 square feet
Nathan: This is funny hey man the market shift and it’s real
Nate: The value is not there but the money is so cheap
Nathan: You just want to find a way right? Same here she was telling me that she would probably just maybe even let it go to the bank and I’m like don’t do that you don’t want your son have pre foreclosure on his record or not Pre Foreclosure foreclosure
Nate: Don’t let it go. If anything like give it to someone don’t let it go.
Nathan: Don’t let it go. Alright, man, well, you let me know I kind of have an idea that no matter what she ain’t getting what she wants for like she’s not getting a lot down so are upfront.
Nate: Okay, do you have enough to go renegotiate? Are you you’re gonna be waiting for me who’s whose quarters the ball? That’s my question
Nathan: You know what it’s she’s thought it’s been in her this her court the whole time but I think I think about the reverse them about the reverse and honor I’m just messing I’m acting tough right now. I’m about to get on the phone and she’s gonna shut me down in a second
Nate: All right, so let me let me go back to that question. Am I texting you with the number one?
Nathan: Yeah, yeah, text text me kind of like your final idea of what you need and then I’ll call I’m gonna call her and just kind of give her give her the juice give her the truth and be like I’m the greatest person you could ever talk to that does this Anita and I’ve tried every scenario this is the the these your best options here. Alright, thanks man.