REO property. When it was foreclosed owners owed 42K. Cert. of purchase from the bank was 45k. no other loans or leins (I checked) just got listed for 150k it does need some work, comps show fmv @ 165k, (I want to get this and wholesale to an investor) if I offer 68% (# pulled out of a hat) of fmv I would offer $112,200.
does that sound like a good offer?
think the bank would go for it?
if I am wholesaling, and I want 5-10k on this deal would there be enough left for the invetor to buy it. repairs would be around 15k.
This may be a great deal; for someone who wants to buy and rehab and hold as an investment. I try to buy property like this at 20% below retail including fix up as long as it cash flows.
It would be a little thin for a rehabber who uses hard money loans to buy and fix and resell as they like myself need a 30% discount below ARV including rehab and some of the HML fees. The holding costs and commissions and closing costs dictate the highest offer a rehabber can make.
No one knows if the bank will go for it or not until the offer is made. The worse the condition the higher the chance they will want to dump it.
You know the really scarry thing here is I can tell you this property is in South Englewood 3200 block south Elati I belive in Colorado… If so I have been doing this way to long LOL!
owner now owed 42000 when was foreclosed upon, my guess is they had been paying on it for several yrs something happened, unable to pay any longer, bank foreclosed, on the property that is now worth a lot more and the bank got a lot of equity out of it…
We all know people will go great lengths to do stupid things. Nothing amazes me anymore. I had one person who refused to make his car payments because he was upset that he had to keep taking it to the shop. when we went to repo the car we found it infront of his house filled with cement.
What I am more currious about is how the bank got the property back from auction so low?