Hey guys , I finally found a great deal (so it seems) after looking at tax roll I found out 16000 is owed in taxes. Is this the formula: purchase price = my assignment fee + back taxes?? If so, the numbers look GREAT for myself and an end buyer.
Hi,
Not only do you need to see your purchase part, but you also have to see and understand your buyers needs.
Your purchase is your purchase price, back taxes, your assignment fee, closing cost’s, your buyers closing cost’s, your buyers rehab, your buyers carrying cost’s and utilities, your buyers cost’s to sell, your buyers cost’s to close escrow to sell, and your buyers profit margin!
Good luck,
GR
That helped me out alot. Thanks for clearing that up for me!
What are all the numbers on this deal?
Asking price
After repaired value
Amount owed (underlying loans, if applicable)
Estimated repair costs
Tiffany,
Here’s a quick and dirty way to determine if you’ve got a deal or not:
ARV(After Repair Value) x .70 - Repairs = Sale Price - Profit = Buy Price
A Quick and dirty on repairs goes like this:
Property Square-footage x $10 - $12(depending on how bad it is) = Repairs Guesstimate.
Example: ARV($100K) x .70($70K) - Repairs($10K) = Sale Price($60K) - Profit($10K) = Buy Price $50K.
Now to determine of yo have a deal follow the formulas and if your buy price is less than your sell price you’ve got a deal. That simple.
Hope this helps
Cheers 
Sean
Hi Tiff,
you never gave us the numbers on the deal. if this guy owes $16,000 and back taxes on this property, it all depends on what the numbers look like. You may be a little find a very nice deal this way. Sometimes this can leave room for major negotiations and the price. Sometimes it make the seller look crazy. lol :argue
Back taxes are paid at closing anyway. Just make sure that seller knows that.
Yes that is indeed the “MAO” formula, but I’d submit to you that in most areas of the country these days you’ll need to be offering a house WELL below MAO. Again, this will vary from place to place and from deal to deal, but by and large you’ll need to back wayyy off of that number to garner any real interest from a wholesale buyer.
A deal being offered at or near MAO in this day and time is straight “wood” lol. People are routinely buying houses nationwide at 40-50c on the dollar.
Sean your awesome!! Thanks :biggrin
for everyone else, Thanks too!!