I have a gentlemen that contacted me and he is currently 4 months behind on his payments. The bank has sent him a letter of foreclosure and he wants to do a shortsale.
first-$240,000
Second-$61,000
Repairs-$15-$18,000
Currently Worth- $275,000
ARV-$320,000 with 4-5 month holding cost.
I ordered the short sale package. I figured i could short the second for $1-$2,000. But what should i offer the first?What should be my next step in the process? Thanks for any help.
Well, is your 320k a solid number? 65% of 320k is 208k…so if you got the 2nd (which might be possible) to take 1-2k for their payoff, and get the 1st TD to take a 45-50k(32k - 15-18k for repairs) then you might have the deal. You will need to talk that BPO down as much as possible. Is the repair estimate solid? Based on the information you provided, you will need to pick it up for 208k - repairs. So, you will need to start offering low and work your way up, do not start higher than 208k - repairs. I can’t exactly tell you what to offer, but I hope that helps.
thanks alot that does help. The repairs number is on the high end. All the house needs is a full paint job inside(i own a painting company) and a little drywall work. But the rest of the work is just clean up of the lawn and a powerwash. The 320,000 is a solid number based on a 3-4 month holding cost. :cool
That’s a pretty good deal listen to the last guy’s reply. Remember is they have a 2nd you can pretty much drop kick them out of the deal. Try to short sale the 1st. If that doesn’t work reinstate the first take the property over sub 2. Then Lease Option for 2-3 years. Wow imagine getting just 10 of these deals. That’s over $1,000,000 in profits coming to you in 2-3 years. Good Job!!! :beer