Posted by Jack on April 05, 2006 at 17:37:35:

In my opinion it is too thin. The margin as you described is 50K and thats assuming that the comps are correct. There are comps and then there are comps. If you take $15k that leaves $35k for the buyer who may have to do some repairs and will certainly have closing and holding costs. If you are intending to flip properties you have to be realistic. You expect to get a $15k cash profit for doing next to nothing. The guy that has the real expense is the buyer and $20k to $25k on a $400k approximate investment is not enough return. No way!


Posted by NYCNEWBIE on April 05, 2006 at 16:54:11:

This is my first deal. This is a two family fully occupied and will be sold occupied in Bronx, NY. The asking price is $380k and has appraissed for $430k. Comps in the area are as high as $445k in the last three months. The seller is doing some repairs on the property. I don’t want to take title so I am thinking of putting the property under contract and assigning the contract for $15k. Would anybody do such a deal?

Any comments will be highly appreciated.

Re: WOULD ANYONE DO THIS DEAL? - Posted by Frank Chin

Posted by Frank Chin on April 08, 2006 at 06:32:10:


Lets assume 430K is the appraied value, and true market value. In a normal market here, it’ll take at least 60 days to move. But if you’re wrong, it could take months.

BUT, in order FOR YOU to do this deal, there’s little flexibility on your part even if someone offered 400K. What do you say “sorry, my price is a firm 430K”


But some lady down the street who owned it for 40 years asked for 430K, but is willing to take 395K, or less. Why?? She bought it for 30K years ago, and couldn’t beleive her dumb luck that she’s even getting almost 400K.

Some guy next door to me some years back was told his house appraised for 89K. So for EIGHT LONG months, buyers and realtors came knocking on his door and he held firm for 89K. He finally got it, I met the buyers, and they were a bit “credit challenged”

Finally, I changed jobs, had to move, and listed the place with a realtor, I was worried, and I told the realtor I didn’t want to spend 8 months selling it. I was told it’ll move FAST if I listed the place for 85K.

The place was listed for 85K on a Saturday, a buyer came by Tuesday, offered 83K. We compromised on 84K.

I doubt that a seller would give you EIGHT months to fuss around for 430K.

Now, if you offered 350K CASH for it, close on it in two weeks, and spend several months trying to sell it for 400K or more, it’ll be a different story. If you own it, you have all the time in the world to get your price.

Frank Chin

Keep looking. Go find a real deal - Posted by DaveD (WI)

Posted by DaveD (WI) on April 05, 2006 at 20:10:43:

Unless maybe you are Kristine (CA) (smile), there isn’t a deal here. You are trying to flip properties at retail? OK, 10% off retail. Whatever. Go read the “how to’s” again. The first 10% is air. You can’t build your business on air. Moreover, who is going to buy your assignment so they can close at retail? What is the point? If the investor you want to sell to uses your criteria, wouldn’t he be better off just calling a realtor and buy houses all day long at 90 cents on the dollar?

Honestly, any of us could tie up property day in and out for 90 cents. But we wouldn’t be any more successful at assigning those “deals” than you will be. Why? Nobody to assign to, that’s why. Nobody is going to go 400K in debt to pick up 30K in equity based on an “appraisal.” Would you?

Go find a house that has big problems. Big problems that scare normal people. Big scary problems in which there is a gonzo payday for the guy who figures out how to solve the problem.

Solve the problem. That will create a bonanza of economic value to you. Then you won’t have a problem either assigning or funding it yourself. You won’t need a calculator to figure it out, either.