Just visited today with a guy who received his notice of default. He is scared and a motivated seller. He owes $90K on the house and it assesses for $97K. The homes in the area go for about $120K. Is there any profit in this deal? I’m not sure a short sale is feasible since he owes less than the assessed value but he probably can’t take too much less than the loan balance i would think? How can I help him get out of this situation but also get a profit for myself? Or is this deal I should pass on?
As you can tell I am new to the business so just figuring out if I got a good one or not.
It would seem that a short sale is out of the question, but a call to the bank could not hurt.
How much is the current owner able to bring to the table?
Is the property in need of rehab work?
Can you purchase the home with as little as 5% down?
This could be a very good investment.
We have an investor that can purchase the home outright so financing is not a problem. Rehab work is uncertain at this point. Current owner probably cant bring much so it is on us.
Until you have hard numbers, it’s just a shot in the dark at best.
The homes in the area go for about $120K That doesn’t mean much. You need to find up what THIS property will be resell for. Find comparables!
Tax assessed value doesn’t mean anything (other than to figure out the taxes).
Find out what repairs, if any, are needed and how much it will cost to repair.
Once you have the numbers, then you can get better answers.