slim margins

Foreclosures, Short Sales, Tax Foreclosures
1

I paid too much for a property.

To make a long story short, bank valued the home correctly at 160k. I could only get them into contract for 128k. I know, I know not a great deal but its better than losing the deal completely.

With these slim margins, would it be pushing it to think I could get an investor to buy at 133? I asked bank to give me 4 weeks to close, but they would only allow 3 weeks.

Can somebody tell the best way to approach this

Thanks for any input

Gregg-Tucson

2

How much for estimated repairs?

3

5-7 k in repairs

4

hellowwwwwwwwwww
if its worth 160k y can u only get 130k if u sell it???
then its only worth 130k isint it !!! ???

5

If the ARV is $160K, not sure an investor would be interested. That’s only about 15% off the value.
Why don’t you keep it, do the repairs and resell?

6

Thanks for confirming what I guess I already knew. It looks like I probably will just sell it for another 5k. Just wanted to make sure I wasnt missing anything. And thanks duh for the jerk comment! :biggrin

Gregg

7

Sell it unfixed to a handyman do-it-yourselfer for $140k and walk away. And make the buyer pay the closing costs or you can kiss a good chunk of your profit goodbye.

8

Not meaning to throw in monkey wrenches or anything, but is it realistic that a handyman will buy it for 140 add his 7k in repairs, which is now 147, throw in his lending costs, closing costs, etc. and expect to make a profit? even without taking into consideration holding costs and if he’ll use a realtor?

I’ve done several rehab type deals and this in no way looks like something I’d touch.

Now as I’m typing this I’m thinking that you might have meant a handy-man type who plans to live in the property himself, and not thinking about reselling which in that case would make more sense. :beer

9

Precisely. He thinks he’s saving boat loads of $$$ and he gets to use his hammer that has cobwebs on it.

10

Thanks fellas for the input. Ill let you know how the deal goes.