First deal working

Foreclosures, Short Sales, Tax Foreclosures
1

Hello everyone.

I am currently workoing on my first deal. I found a property in foreclosure the property is a fixer upper. it was stripped of all appliances and wood stove. so the is a hole in the wall, needs paint , and new carpets. the ARV is around 230,000. it is listed a suject to short sale . the owner owes 201,000 but it is listed for 200,000. I am estimating. the repairs costing about 10 - 15 grand. thinking about offering 150,000 as initial offer. The house is 1500 sf 3 BR and 2 bath. Do you guys and ladies think that my offer is too low?

2

The formula I’ve used for properties in the price range is 80% ARV - repairs. In your example $169,000 would be your max offer. No problem with trying $150,000. I don’t think you could ever say an offer is too low. You’ll find out when they respond.