Noob with a possible whopper!

LAdies / GEnts

I offer to you the following:

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


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”)


Thanks for your highly valuable time spent reading.

Joe :banghead

Forget your :rolleyes fee :rolleyes

ARV is 155,000

Repairs are 140,000

(155X0.75)-140= :shocked -$23,750 :shocked

That’s your max

They need tp pay you to take it

Is it still standing?

Thanks JDS,

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

FMV - $175,000’ish

Probably $80,000 in real applicable repairs

MAO = $76,000

1st offer $60,000?




So 175X0.75-80= MAO $51,250

1st offer $25,000

I still think you’re getting carried away.

Any other liens? Taxes, mechanics etc…

Sounds like a dozer

120 + views and nada.

I will write this out to the best of my ability, at the very least to chronicle what could be my 1st closed - funded SS.

The revised numbers are:

FMV = $175,000

BALANCE = $313,700 1ST $17,000 2ND = $331,000 ish

REPAIRS = $145,000 pared down to approximately $80,000

Homeowners’ Mother in Law will buy property for FMV without repairs (she has grandkids in the home she doesn’t want to see have to move under duress)

1st Offer to the Lender = $125,000 with an Option to Purchase Contract

If accepted, sell to the Mother in Law for FMV = $50,000 spread

the Sale Date is in 9 days!! :shocked

At least it’s good practice

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!


It makes me feel all warm and fuzzy inside when Keith Hastedt agrees with me.

Something smells fishy, and it may not be his mother in law.

If the bank finds out who’s paying off the short sale, and this certainly isn’t an arm’s length deal, the law suits will be flying.

Wow…you’re easy to please!