Posted by Pat on May 24, 1999 at 10:57:45:
Hi fellow investors, I am making my first offer and I am using the Ron LeGrand course and I have a few questions. I am making an offer on a house (ugly), the seller first wanted $39,900 and has since gone down to 25k (very motivated). The house is a 3 bdr 2ba and used to be a duplex. It was built in the 1940’s. In it’s after repaired state in will sell for around 69,000 it will take around 15k for repairs. My question is this. I want to offer 16,900. How do I factor in this with the offer. I caluculated the cost and they add up to about 20k including profit. Where in the equation should put in the cost to purchase the house. Or am I even figuring this out right? This seller is very motivated and I don’t want to blow this deal. Also I have a realtor gathering the comps for me. How much should I factor in her cost to be. On his tapes Ron says that if the Realtor is going to sell it for you you should plug in around 9%. What about if they are only pulling the comps, how much should you pay them to do that. Please help me any advice form LeGrand students or otherwise would be appreciated.