Posted by michaela-ATL on January 12, 2004 at 12:36:53:
what is your exit strategy? Are you planning to keep the house and rent it out? live in it? trying to flip it to another investor? flip it retail? Lease/option it? Land contract?
Unless you’re in a hot market, the top 10-20% are air - meaning, if the house is worth 150k (is that their or your number?) they might walk away with 120k, if they sold it on the open market. (think 90% offer, 7% commission, 3% closing costs, not counting any other request the buyer may ask for). So, if you gave them 120K, they’d do pretty good, because they’d sell right away and wouldn’t ahve to wait for a buyer months down the road.
It really all depends on what you’re planning on doing with it afterwards. At that price I don’t think another investor would be interested, but you never know. There’re people, that aren’t looking for equity, but just want a house to rent out.