Deal or no Deal - Posted by Jason S

Posted by adam on April 16, 2006 at 18:23:17:

well it sounds good so far, but remember one of the number one mistakes is underestimating repair costs and time. especially if you are going to add on. as far as the pictures go, it depends on how ugly it is, the nastier the pictures the better :slight_smile: black mold is always good. i havent purchased a freddie mac forclosure so hopefully someone else will chime in on that.

Deal or no Deal - Posted by Jason S

Posted by Jason S on April 16, 2006 at 13:36:12:

What a great phrase…

Howdy all,

I have my eyes on what I believe might be a doable deal. I found a Freddie Mac foreclosed property listed for 27900. It pretty much needs a complete overhaul. My initial reapir estimates would be in the 12-17k range. My estimates are in the process of pulling comps for the neighborhood. It’s filled with some doctors, nurses ect as it is within walking distance to a very large hospital. Two doors down there is a house being listed for 99600. My junker sits on a large lot 40x185 and in between to really nice well kept homes. The home is 3/2 1300sqft with plenty of room to expand. So far the numbers add up.

My question being a foreclosure, I would definetly try to get this home for as little as possible. Would taking pictures and submitting along with the offer help my chances of them accepting a lower offer?

Does anyone have experience buying from Freddie Mac and if so did they get discount? I heard HUD may go as low as 83% on offers.

Any comments appreciated.

P.S Open the case!!!

Re: Deal or no Deal - Posted by Joe Kaiser

Posted by Joe Kaiser on April 17, 2006 at 03:02:07:

It’s an REO . . . they already have pictures.

What’s a “discount?” There are no set prices in the real estate business,
really, so there’s no such thing as a discount. Just pick a number that
works and hit them with it.

You can’t do a complete overhaul of much of anything for $12k.

It never pays to “expand.”

Go find out what the loan they foreclosed on was all about. If it went to
sale like you suggest, and no one bought, you have an indication of
what it isn’t worth.

I’d track down the former owners to learn the real story. That kind of
info is often priceless.