SFR 1,600 sq ft sitting on close to 1/3 acre of land in a decent bread and butter.
ARV / FMV approx. $155,000 (two appraisers comps averaged)
Formula used to discount the debt:
$155K X .75 = $116,250
(this might get a little weird)…
Estimated repairs to get this property to POP = $140,000 (it’s pretty bad)
Fee = $10,000
Max Allowable Offer of - $33,750???!!!
How What Where When Why
NOW,
I have the property under contract - very good rapport with owner (but at what price?)
I have a buyer - the mother-in-law of HO (homeowner) Qual’d for a new loan at $200K
I am putting together the package to send to the Lender. (There is a 2nd who’s LOSS MIT has stated to me “at this point, we’ll take anything we can get”)
PLEASE ADVISE.
Thanks for your highly valuable time spent reading.
Obviously there is more to it. Property not all that BAD! Contractor trying to drum up some biz in a “Down Market”.
I estimate many of his repairs will get kicked like a bad habit but there willl be substantial rehab needed for this house to get it to sell before the next BOOM market!
Any way, here is a little more info for the MASTERS out there willing to lend an ear:
Balance on 1st - $313,761.31 Balance on 2nd $17,258.71
What are you talking about, “nada”? JDS gave you the straight skinny.
($175K x 75%) - ($145K + holding costs) = Max Offer. That’s a max offer of -$13,750 (less any holding costs) meaning that they’d have to pay you to take it - and JDS told you that. Either there’s nothing there to wholesale or your numbers are whack.
When a $175K house needs $145K in repairs, that’s referred to as a “scraper”. Sounds to me like somebody owes $331K for a piece of garbage…
Sometimes theres nothing there and you need to just let it go. Now if the lenders will let it go for$125K AND the M-I-L WILL buy it for $175K you might make a couple of bucks but I’ll bet she won’t put it in writing!