OfflineI had my realtor call me today about a foreclosure that is in a really good neighborhood. The bank dropped the price by $21,000. Their asking $178,598 The property is 4 bed/2.5 baths/3 car garage on a little over an acre of land. It needs $15,000 on high end in repair mostly cosmetic(my brother in law was with me and he is in the construction business). I did comps in area and they are at $235,000. I even checked with the Real Estate Analysis system on here and it came back at $235,000. This is a bank REO and is not assignable. However, I was thinking of lining up a double close if I could get a buyer on the other end and get it cheaper from bank or joint venturing. I could do some of the work myself. Let me know what you think please! I am fairly new at this.
Thank-you for your advice.
TOGETHER WE CAN ACHIEVE THE IMPOSSIBLE!!!
You need to build your buyers list; then, when you have deals like this, you have one of your buyers put up the money at closing, or you could do a double closing with transactional funding. But the key to be able to complete an reo deal is to have your end buyer ready.
Wishing you great success,
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
What Valerie said above is key advice. Also be sure to read the contract thoroughly. There will probably be language in there stating you can't resell for more than 20% profit within 90 days.
- Tom
At the asking price if your ARV is accurate there would only be $5,000 of profit or so to the investor on an assignment much less on a double close. If you could get it under contract for $145,000 or less there should be enough profit in the deal to do a double close and have profit for you and your investor.