Will this be a good deal?

Real Estate Investing Single-Family Homes
1

Single family house.
I searched the pre-foreclosure list ,then went to knock the door.
they said yes,they want to sell.

1463 sqft,3/2br/bth,converted the garage to a big room.
They bought this house on 2005 for $65,000.
They told me they still owe wells fargo $63,333,
and I saw the trustee sale paper.

I don’t understand how come they have only paid less than 2k in 7yrs.
Maybe still owe some other bills.
A very motivated seller.

It’s gonna to auction on 5th March.

I asked him to find out what the lowest cash buy price would it be.

Neesds paint interior.,needs new kitchen cabinets.

Countycad est is $71,230, Zillow est is $79,593.

I am trying to put it under contract then assign to sb else.
I am not confident in getting a buyer for that condition.

Thanks in advance for any advice.
.

2

dont go by what zillow tells you lol

3

I think the values are too tight to assign to another investor.

Often times, trustee sales don’t have enough equity for assignments.

Jim

4

"dont go by what zillow tells you lol "
Yeh,I know zillow is not too reliable,but can’t find better one.

5

[QUOTE=jimingersoll;889044]I think the values are too tight to assign to another investor.

Often times, trustee sales don’t have enough equity for assignments.

Jim[/QUOTE]

yeh,the spread is small,so I need find out what the lowest cashbuy price is.
see if I can squeeze out ks of profit.

6

Here is a buying formula for you

Max offer = ARV * .7 - Repairs - YOUR fee

ARV is the after repair value

7

[QUOTE=jimingersoll;889050]Here is a buying formula for you

Max offer = ARV * .7 - Repairs - YOUR fee

ARV is the after repair value[/QUOTE]

Looks like it’s not a good deal,
ARV is about $80k,repairs at least $10k.

8

I don’t agree with jeffyang, that he told Zillow is not too reliable. If anyone have doubts about a property or house you can visit his website and check correct information. I have suggest other site which is provide better property like Trulia and Loopnet.

9

Stick to the buying buying formula and you should be fine finding buyers for your deals.

To find cheaper houses, you will want to tweak your marketing to focus on finding motivated sellers with more equity.

Jim

10

[QUOTE=jimingersoll;889057]Stick to the buying buying formula and you should be fine finding buyers for your deals.

To find cheaper houses, you will want to tweak your marketing to focus on finding motivated sellers with more equity.

Jim[/QUOTE]

Thanks a lot for the advice.

11

I think, you need to implement on formula…

12

As others have said, there is no deal here if the FMV is only $79,000. There is no magic source of housing value estimates. Zillow and your local Assessor/Tax department numbers can be used as a starting point, but if you can’t be bothered to do the research of driving by comparable sales, comparing and contrasting the comparables to the subject property, then you should not be considering real estate investment as a business.

[QUOTE=jeffyang;889039]
I don’t understand how come they have only paid less than 2k in 7yrs.
Maybe still owe some other bills.
.[/QUOTE]
I could provide a half dozen reasons for this, but I too am frequently amazed by this.