appreciate your opinion - Posted by newbie

Posted by Craig (IL) on March 18, 2006 at 22:04:36:

This is skinnier than you may think. If it is worth more, why is the seller asking $275K?

If you get a signed purchase contract, you can flip just the purchase contract. You wouldn’t have attorney’s fees even.

Do you have a buyer lined up? Experienced investors have a buyer’s list–something that you should start if you haven’t already. If you had a couple of buyers in your pocket, you could bargain with more confidence.

If you don’t have buyers in mind, why is this such a “good deal” that buyers will flock to it? What’s in it for your buyer? If you buyer is another investor, do you expect him or her to pay full price?

If you can’t bargain the price down any more, you would be fortunate to flip it and get 5K. So, of you potential prolfit were only 5K, how much risk (earnest money) is reasonable? . . .are you willing to take?

If you can do this deal and walk away with even 5K, thank yourself for putting together your first deal. Be happy. More can follow.

appreciate your opinion - Posted by newbie

Posted by newbie on March 18, 2006 at 21:06:35:

I am new to rei with little cash. Having a hard time to find private money lenders and therefore I have decided to flip “pretty houses” without taking ownership.

I was looking at a property today and the property was in good shape. The asking price is $275k and the owner wants to be cashed out at closing. So nothing creative can be done. Comps for similar properties in the area is betweem $315-325k. My only closing cost will be attorney’s fees. Happy to walk out with $15k net profit since it is my first deal. I put a trial ad on craigslist for $330k and got three people interested so far. Would anyone do such a deal?

Appreciate any comments.