I have my eye on this one property that is a short sale listed for $270,000 the BPO is $267,000.
How do I figure out what is the most a lender would lend on this property?
I’am asking this is because my plan is to make an offer of $255,000 and then double close it to my end-buyer for ? price.
For example if I tie up the place for $255,000 and then assign to my end-buyer for $275,000
Then I would end up making $20,000.
Is double closing the way? Do I have this some what correct.
Thanks in advance, just need to know on how to do this.
Ok so the property’s bpo is 267k and they are asking for 270k and you want to offer 255k to the seller then sell to your investor buyer for 270k? :flush
First off what repairs are going to be needed? Is there any potential to raise the property value comparable to the neighboring houses? And a 5k spread what is going to be the end buyer exit strategy? Based off what you said and corrct me if im wrong your buyer isn’t lookiong to make any money and is looking to hold.
In order to make it appealing to an end buyer i would think about making him/her as happy as your going to be on payday.
But thats just my 2 cents. I hope it helps from my experience the more people you make happy, the happier you ultimately become.
Agreed, you are negotiating a retail price. Your offer should not be more than $190k depending on the repairs. Make sure your closing date is far out as well, don’t short change yourself. If you are in a depreciating city, you also need to account for the depreciation.
As far as an assignment goes, I don’t do short sales so you need someone who does them to see how can you do it without the lender’s approval to be able to close it.