Posted by Larry on September 09, 2003 at 13:01:48:
From my experience and tribulations HUD homes and REO’s you will need to do a double close because these institutions do not like to see money left on the table at closing… If you want to flip this property or any other property to another investor then you will need to do a double close only if the formula holds up.
Arv x 65% - repairs - c/c/cost - af = mao
a) Arv = after repaired value
b) Repairs ? use the evaluation sheet
c) c/c/cost = carrying and closing cost
d) af = assignment fee
e) mao = max. allowable offer
Remember to take into account double closing costs.
Best of luck to you