OfflineMy agent sent me an updated foreclosure listing with a price cut of $15,000.00. It's been on zillow for 140 days. I haven't been in to see it but it looks as if it is in pretty decent shape, maybe some paint and some updating. I ran comps using 5 recently sold houses, same #beds and close on baths, w/in 20% range for square footage and w/in a 1/2 mile radius. The price per square foot on the comps ranged from $100.00 to $157.00 per square foot. Each house sold with in $6000.00 of its zestimate or local appraisal #'s.
The average square foot price from the comps is $128.00 per Square foot which puts the original foreclosure I'm looking at, at $207,872.00. The list price is now at $154,900.00. The zestimate(just for fun) is $216,000 and the local appraisal is $279,000.
Is it a good guess to say that if I lock this house up for 154,900 that there is going to be about 62,000.00 in equity (ARV). Is it possible that I could double close on this house for a $5,000. fee and the investor would have around 50,000.00 in equity after closing costs and other fees are covered.
Thanks, James
http://www.deangraziosi.com/real-estate-forums/my-deals/93832/deciding-w...
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
The average square foot price from the comps is $128.00 per Square foot which puts the original foreclosure I'm looking at, at $207,872.00. The list price is now at $154,900.00. The zestimate(just for fun) is $216,000 and the local appraisal is $279,000.
Is it a good guess to say that if I lock this house up for 154,900 that there is going to be about 62,000.00 in equity (ARV). Is it possible that I could double close on this house for a $5,000. fee and the investor would have around 50,000.00 in equity after closing costs and other fees are covered.
Thanks, James
James click the link that Mike has posted and run the numbers yourself. You have to make it a good deal.
If it is worth $207,000 and is listed for $155,000. It has not sold yet. 140 days! You have to ask yourself why??? Does it have $60,000 in rehab/remodeling costs?
Here is your buyers numbers if there is NO rehab and he is cash and has no money costs.
Sell it at $207,000
10% for commissions, closing costs, insurance, utilities taxes etc.
$20,700
Your fee $5,000
Buy price $155,000
That equals $26,300, almost 50% of what you thought was equity.
That is based on it selling for $207,000 with NO rehab. Ain't gonna happen or it would have sold already. I guarantee this property will need close to $40,000 in rehab IF and Only IF your ARV is accurate. Why do I say this? The bank knows what it is worth minus repairs and that is what they put it on the market for. With no room for an investor to make money. YOU MUST OFFER WAY LESS than $154,900 or you will have a property you can not double close to a fellow investor.
If $207,000 is an accurate ARV and nice properties are moving in the area for that amount. I would offer 65% of ARV minus repairs. If the repair/ rehab is indeed $40,000 my offer would be $94,500. You can't make an offer (well you can I guess) if you don't have an accurate repair estimate.
Just my thoughts on this, PM me with questions.
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
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