Can You Buy This Californian 1989 Half Million House For $150K?

Public Facts:

• Single family
• 4 beds
• 3.0 bath
• 2,171 sqft
• Lot 8,000 sqft
• Built in 1989
  

Zestimate Information

• Zestimate: $545,000
• 30-day change: -$13,000
• Value Range: $463,250 - $577,700
• Last updated: 07/07/2008

Market Value Change

* The navy blue line is for the value of this property and the light blue one is for the Zip trend.

Legend

July 8, 2008

Dear XXXXX:

I was given a piece of information. This almost 2200 sqft house was foreclosed for $468,948.00 last year. It has 4 bedroom and 3 bathroom on a 8,000 sqft lot. And it can be mine for less than $150K if I act quickly to get it.

After repair or improvements if needed, it shall be easily sold for $300,000.00 at least. (From the government map, it is located in the best area priced between 300k-360k in the year 2000).

I am willing to give you a trust deed bearing 12% interest against the said property if you are willing to put up $90,000 and want a high-yield return so that you can get $900.00 a interest only monthly payment for 2 years, isn't it better than your bank has given to you?

Well, what you think?

Also, last July 4, I sold my 4BR, 2.5BA 2016 sqft manufactured home for $75,000.00 with a 0.5 acre lot.

The deal is: The buyer, a general contractor who is looking a house to host his crew and family, puts in 14 improvements of $7,000.00, valued at far bellow market estimate, and pay additional cash of $3,000.00 to execute the land contract (Title is still belonging to me until the unpaid balance of $65,000 is paid.) So, the down payment is $10,000 and I carry back of $65,000.00.

The seller financing is as follows:

1. loan amount: $65,000.

2. Interest rate: 12.75%

3. Amortization schedule: Working with a 20 year amortization plan, the monthly payment is $750.00. There is a balloon payment in 10 years. In July 2018, when the loan is due, the buyer shall pay me the unpaid balance of $50,729.00 +/-.

Looking for a yearly profit return of 10%, this note has its current cash flow present value of more than $88K, at this moment. please let me know if you are interested in buying the installment note.

ET