Have a motivated seller
Asking Price $214,000
Tax Assessed Value $208,000
No Repairs needed
Current Payment: $1425
Mortgage left: $59,000
Has bought another house and is having difficulty making payments. What offer should I give him? Should be subj2 or
buy with MAO formula or do actual calculations
6% realtor fees $12,840.00
3% Title, escrow, $ 6,420
Rehab cost ???
Carrying cost while on market 3mths $4275.00
What is the market value? Tax assessed value in my area is roughly half of the market value. It’s probably different where you are.
You say no repairs–is that his words did you actually see it? I’ve yet to see a house that doesn’t at least need paint and carpet!
Is the house listed with an agent? How long has it been on the market? Why hasn’t it sold yet?
What are your plans for it? Wholesale, retail, rent or L/O? Your offer wil depend on your exit strategy.
If he only owes 59k and it is at least a 200k house, you should probably just run the numbers and make an offer, discounting according to your formula. With that much equity sub2 will probably not be attractive to him, but hey,you never know!
Why don’t you see if he will owner finance you the deal? You would avoid most of the closings costs and close the deal much quicker than with a bank. Plus if you were to sell it by offering owner financing you will attract more buyers and sell the property much quicker.
Also, depending on your goals, you can sell the carried back paper at closing to a note investor for a small discount and walk away free and clear of the property. I put these deals together for note investors and know this type of “creative financing” can be done. Food for thought,