[b] I am new and I understand how short sales work. I have a few short sale investors who have agreed to work with me where I find good prospects and do the research and if the property is short saled I get a portion of the profits.
But after I find a motivated homeowner in foreclosure, I need to know how to recognize a good short sale deal. When I look at the numbers, how can tell if it is a good deal?? Please advise. Again I would love add you to my small database of investors and work with you. I can be reached at LindaKittrell@verizon.net or LindaKittrell@yahoo.com
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I use a spreadsheet to calculate the maximum offer to make on the house. The important factors to include when calculating the max offer are:
[]fair market value of the house (based on comps)
[]acquisition costs (inspection, appraisal, loan fees, title insurance, recording fees, etc.)
[]holding costs (mortgage, insurance, taxes, utilities, etc.)
[]fix-up/improvement costs (labor, materials, and a buffer for mistakes)
[]sales costs (Realtor commission if used, home warranty, notary fees, document fees, etc.)
[]expected profit
The max offer = FMV - (estimated costs + profit). I might offer lower, but I won’t offer anything higher than what the numbers show me will guarantee a profit. If the bank doesn’t accept my max offer, then the deal isn’t worth doing.