scenario:
bungalow house selling as is for 279,000
fix up and finishing basement cost 32,000
FMV after fix up 315,000
according to our agent, guranteed offer acceptance is 260,000
mortgage left 110,000
owner deceased, spouse selling, vacant, DOM = 33
5 houses within 2 block are on sale (this is what i am concerned about)
my offer 1: 250,000 up front
offer 2: 215,000 up front, 40,000 seller financing, 3 years
offer 3: take over mortgage, teach you how to invest in RE, call it even.
erm…lol, but seriously i only thought of 2 offers. it may be a poor deal, not enough equity to wholesale it, so i might just buy-fix-sell really really fast. any suggestions?
i will keep update it, and post the final accepted offer.
Forget it. This thing is so tight you lose your *ss in :shocked holding costs. Add in a sprinkle of slowing national real estate market and you have…
YOUR new upside down RENTAL!!!
Be patient, there’s going to be a lot of this stuff coming along. FORGET ANYTHING A REALTOR TELLS YOU. I’d offer $200K just to see her expression. Tell her it’s all cash NO inspections, then you have a deal.
Excellent idea posting this. You would not believe the calls I’m getting from people who decided flipping houses would be as easy as it is on TV. Unfortunately for them it’s not as easy as it looks. In a falling market you REALLY need to steal this stuff to PROTECT yourself. I will not buy a house that I couldn’t keep and have it cash flow EVERY month. It’s really that simple.
petefma has a great point. I have a massive short sale from 2 realtors. They both were making big bucks in the new old market. With the money they felt like they knew how to invest. They then bought 8 properties at over priced prices. Now they can’t sell a house, and are defaulting. Good idea posting first
Ryan