PERPLEXED NEWBIE....DEAL ON THE WAY - Posted by DaveH

Posted by DaveH on February 25, 2002 at 07:25:18:

Tim Fierro (Tacoma, WA), thanks for your response!!!If I was to sell it to an investor I would sell it for 75K or ask for 80K and leave room for the investor to bargain not pass 73K or something in that area. Tim, the home is worth 135K, once it has been fixed up. Also, the home has just been listed. I wouldn’t are touch the rehab. The average list price in this area, as was I was told to me by the agent on the CMA is $99,999 in the area. My understanding, is that this property was foreclosed and now the bank is trying to get rid of it. Again, the property has just been listed. Thanks Tim
DaveH

PERPLEXED NEWBIE…DEAL ON THE WAY - Posted by DaveH

Posted by DaveH on February 24, 2002 at 19:22:12:

Okay, here it goes… I contacted a RE agent whom has just replied to me with a great possibility. He has found a house in the Corrier Heights area of Atlanta, Georgia. The list price is 90,000. There is some repairs that needs to be done. I see the possibilities of a flip or possible assignment. Upon the completion of the deal the FMV is anywhere from 110-500 to 135,000. I see the prospects. However, I’m having a problem in seeting the deal up. I don’t know how which to go about seeting the deal up. It is a 4bd/2baths, ranch style, 1 car garage. There is a patio at the back, a bar/office downstairs. The bathrooms needs work. The hardwood floors needs to be redone inaddition the interior of the house needs a paint job. Brick exterior. The house needs about 15K the max in repairs if that much. I was thinking of offering the agent 65-70K in cash. And then sell the contract for 10K. I know the risk I will be running if I stay in the middle of this deal. I see the prospects. This, one will go soon. I need to know how to come up with or what is the maximum allowaboe offer after all expenses are talleyed and still be able to price it to sell it to an INVESTOR, for the fast cash… I’m even thinking about taking out a hard money loan to finance the deal. If I were to would I be able to assess enough money to factor in holding cost etc. Again, I see the prospects.
Perplex Newbie
DaveH

Re: PERPLEXED NEWBIE…DEAL ON THE WAY - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on February 25, 2002 at 24:00:12:

At $90k now, your offer of $65k + $10k profit + $15k work = the $90k that it is listed for. Why haven’t the investors in the area already picked up this property at the $90k now? You are looking to sell it for $90k when it is already priced at $90k for another investor. If this just came up for sale, then maybe there could be something to it, but if it has been sitting for any length of time, you have to ask yourself why hasn’t the other investors purchased it yet?

Check your numbers. Also nail down if the home is worth $110k or $135k. At least 20% difference here.