- Joined
- Jun 5, 2009
- Messages
- 966
I was presented with a case where there is no equity; mortgage payments + condo fees are higher than possible rental income in the tune of -200 month. These numbers are yet to be confirmed.
I am looking to offer a solution via AFS/POA/JV where I take control of the property so that I rent it out, sell it or RTO at a later date. They are moving away to another province due to work (new job) so they want debt relief.
My plan is:
a) Having AFS/POA or even JV type document.
b) Asking three months of payments. (if I find tenant then they are not required)
c) Make sure that mortgage/taxes get paid every month.
d) There is not term but current mortgage is not due until 2 years from now.
There is "potential" to turn it around for a break even scenario or private sell with minor work for a 10k forced equity or get it into RTO deal (Yet potential)
The ideal scenario is having positive cash flow (+free equity with no money down) but it is not the case` so would you entertain a deal like that?
I am looking to offer a solution via AFS/POA/JV where I take control of the property so that I rent it out, sell it or RTO at a later date. They are moving away to another province due to work (new job) so they want debt relief.
My plan is:
a) Having AFS/POA or even JV type document.
b) Asking three months of payments. (if I find tenant then they are not required)
c) Make sure that mortgage/taxes get paid every month.
d) There is not term but current mortgage is not due until 2 years from now.
There is "potential" to turn it around for a break even scenario or private sell with minor work for a 10k forced equity or get it into RTO deal (Yet potential)
The ideal scenario is having positive cash flow (+free equity with no money down) but it is not the case` so would you entertain a deal like that?