REO possible first deal - Posted by Tracie-WI

Posted by JC on July 21, 2002 at 21:50:10:

The formula I use is FMV - 20% - repairs - my profit = max purchase price. Holding costs refer to the monthly morgage, insurance, association fees if there is one ect…

Hope this helps

REO possible first deal - Posted by Tracie-WI

Posted by Tracie-WI on July 21, 2002 at 14:49:19:

This would be my first deal. It’s a REO I just learned about in my old neighborhood. I’ll drive by today and see what shape it’s in from the outside. Comps in that area seem to be in the $130’s. I’m reading everything I can find regarding REO’s. But I could use some advice on what needs to be done in which order. Also, in coming up with an offering price, what needs to be included? I’ve seen the formula of 65-70% ARV, minus repairs. Is that it? Are there other expenses I need to take into account? I’ve seen things like “holding costs” talked about, and haven’t any idea what that is referring to.

I have a HML, and the idea would be to fix it up and sell it. I’m not sure if I’m ready for this or not, seems like a lot I still don’t know.

Even suggested search streams would be appreciated. Thanks in advance.