OfflineHere's another one. I put an offer in on a house that is bank owned and has dropped 3x by the bank from $240 to $229 to $209. I offered $170K and the house needs a minimum of $30K in repairs. The bank is still sitting on it a month later and not one other person has made an offer to the bank because of its current condition but even after plenty of walk throughs. The FMV in fixed up condition could fetch $260-$270 according to my realtor. I want to buy it and sell it as a lease with option because I already have a buyer! What are the chances of getting a loan refinanced these days. If I go back to them and resubmit an offer and they accept. I have the $30k to fix it but want to buy it on a 80/15/5 and refinance the 2nd in 60-days with the new higher appraised value after fixing. Is anyone else running into problems with banks not refinancing a second mortg. in 60-90 days? That would be the killer on this deal if I couldn't get it refinanced to make the profit back out of it ASAP and continue to buy more property.
HEIDE
Hi everyone!
I live in Los Angeles county, and have only seen foreclosed homes in those...
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Post removed because it was not directly to the original topic. Linda, please repost this (I sent you a copy of it) because it was good, in a related topic or create a new topic for it. Thanks! -DGadmin
Not knowing what part of the country you are in, I might suggest a couple of things. Sub-Prime lenders, mortage broker, or even a hard money person if you know of one. Let me ask this, if the property is in pretty good shape and you already have a buyer for the lease/option, why would you want to drop 30k of your own hard earned cash?? I might be missing a point here. I would like to hear how you made out on this deal....Jan
Always Walk In The Sun
now thats a deal...
(I offered $170K...ARV $260-$270k with $30k repairs)
Don't Wish the Past, Create the Future! - DH
The house requires the repairs. Here is the list: new roof, carpet, paint, pool needs new liner (no guarantee it will still function so I have added costs for pump, filter, etc for replacement if necessary), some siding missing, few repairs to update bathrooms, new kitchen counter and appliances, 3 garage doors. The house has a great layout and a lot of potential once you clean it up but know one is willing to do it. The realtor has shown it to 80 people but everyone walks because of the cost of repairs. The houses next to it are very nice and currently sell for the $220-$230 range, realtor says if I bought and held for 3-5 years it would easily be $260. One other note, the buyer is my sister but I'm the one with the cash to buy it and fix it. We figure if I buy it 80/15/5 repair it in 60-90 days have it reappraised by the same appraiser as the first purchase (there's a name for this technique and I can't recall it) he'll update the original appraisal with no add'l costs and replace the previous appraised value with the new higher appraisal. Then I go back to the bank and refinance the 2nd mortg for more $, replace my $30k, and make a profit from the refinance. My sister will rent from me as 1 yr lease w/ option (to help fix her credit) then she'll buy it at the family discount price not the "$260" and I get the profit in 90 days. My only concern is with that refinance, if the bank didn't do it for some reason. I'd be out $30k with no money to buy more deals. Anyone see a problem or black cloud I'm not factoring into this equation?
HEIDE