Offline3/2 SFR ARV 90,000, sellers will take 70,000, as is value 53,200 sellers owe 62,000. They are moving and need to sell by June 1st. how can I make money on this deal and help them on there way.
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Cooper Real Estate Investments LLC
" Believe and it will happen"
If I am reading your numbers correctly they owe $8800 more than it is worth. A short sale situation. Negative equity right? You say the ARV is $90,000. How much rehab/remodeling is needed to bring that ARV. What are those costs? You don't have much to work with. If it sells for $90,000 your selling costs, commissions, closing, utilities, taxes, insurance Etc will run around $9,000 so that leaves $82,000 minus the $70,000 purchase price = $12,000 to profit from and cover the costs of rehab.
If you buy at $70,000 you are paying $16,800 more than it is worth. This is a win for the seller but not you.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
I want to wholesale the property no holding costs or fix ups. property is in good shape needs some minor cleanup and paint.
Cooper Real Estate Investments LLC
" Believe and it will happen"
Remember, and this is CRITICAL to wholesaling. Your buyer WILL have to deal with those closing costs and commissions, so this is not a wholesale deal. There is no money to be made. Think how you would present this to your buyer. Where will your fee come from when your buyer will only have $12,000 to cover your fee AND any repairs. How is a little paint and clean up going to change this from a $53,000 property to a $90,000 property?
Its good you are thinking of offering, this is how you learn what a deal is or is not. I don't think this one is even close!! Based on your numbers of course.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
What is the PITI and what will it rent for?
Maybe I'm thinking wrong. 90,000 is the comp value. I want to buy it at a 60%/65%price and then wholesale it. Should be able to get 5000 to 7000. 60% is 54000 l ooks like this won't work as a wholesale deal. Thanks for looking
Cooper Real Estate Investments LLC
" Believe and it will happen"
Cooperinvest, not every deal is a good deal. Sometimes the best purchase price is to walk away and look for something else. We all want to make it a win win but sonetimes the numbers don't work and it's better to just be honest with oneself and walk away or in some cases run away!
Raymond