OfflineI found an fsbo with an after repair value of $140,000.. I talked to the seller to find the seller's motivation to sell. The owner of the house passed away couple of months ago. the house is in pretty good condition on the outside. It's a 3/2 single, it needs new carpet and bathroom remodel and kitchen upgrade. the house is currently being offered at $115,000.. I would like to assign the deal. What can I do and what strategy is better? I have not done the walk through yet, but will do in a couple of days.
thanks in advance;
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Do u have a buyers list? How did u figure the arv? did u have someone come in and give u an estimate of repairs? I would assign the deal but try to use as much justification as possible when negotiating your offer. Try asking the seller if he would lease option to u then u could sublease it to other tenants if their is a clause in the contract that allow u to. I would personally have a lawyer draw up the contract and put the necessary clauses in their to protect yourself because sandwhich lease options can pose a risk to the investor if u dont know what u are doing. Hope that helps
Here is how i would calculate your offer:
$140,000 (If the ARV is correct)
-42,000 (30% discount)
_________
$98,000
- ? Cost of repairs
_________
- ? Your profit
_________
$ ? Offer
By using this formula, your buyers/investors should be happy to do the assignment with you.