flipper

That is not a stupid request. You are entitled to offer whatever you want. Did you ask for any concessions? Typically, if you are short on cash, it's a good idea to at least ask for closing costs. Have you also considered getting a private lender? That way, you could have that person lend you all the money for the house. In return, you could give him/her an agreed percentage amount and/or a cash bonus. Try to have them wait until it flips to pay them. Some, however, will insist on being paid monthly.

Well now the offer has been sent!!! 100K with 15K back at closing. My agent thinks this is good but they may counter for 10- 15K more.The comps are anywhere from 153K to 180K, Where do I draw the line and walk? this will be my first flip so I'm a little too excited I think. Also, what about capital gains? will that eat up too much profit to make it work?

Capital gains only eat up a certain (I think 20% on short term at the moment) percentage of net profits, regardless of how little or much it nets you, so that isn't really a factor unless you have cut off amount established for net profit on any given deal and for < than X you won't bother.

Have you plugged all the numbers into the "offer calculator"

Market Value - 153K to 180K
---------------------------
Profit Min. - ???
Closing Cost - 5000
Repair Cost - 20000
Holding Cost - 8000 (est. 4 months)
Realtor Fee - 10000

This is a great guesstimator for a price point and you can use it backwards too.
If you can narrow your COMPS, that would help you out alot, I think.
Drop me a line if your not for sure on the math of it, maybe I can help!

Anyway, good luck and let us know how it goes!!

Why would one ask for money back at the closing as opposed to offering lower? Any comments appreciated.

the point of the deal was to get the property with as little down as possible,he said that his money was tied up in another deal.SULLY.

where did you find this FLIPPER? the paper? or driving by? just curious?

drive by.....but to update , they came back with a counter of 135k minimum....I'm walking!!!

go ahead and let that property sit, thats rediculous, well on to the next one.YOUR HERO,SULLY.

Oh, so does that mean he takes the money from closing and puts it as part or all of downpay in the same transaction?

yup,and knowing is half the battle.THE HERO IS HERE,SULLY.

You really know your RE, Sully. Thanks.

I am not done reading the book but Jeff suggested, I thought it was Jeff at the conference call , who suggested to make an offer to have a feel of it. I found a property on foreclosure and emailed the agent, he contacted me and wanted me to meet with him
I thought for the price in the area it's a good deal. What are the things that I need to consider to know that i will gain from this deal ( not much concerned about how much I am more concerned about knowing how to do it) and is it ok to let the realtor know that I am new in this without taking the risk of being
cheated or taken advantage of.
I would appreciate your comments.

I tryed calling the broker # supplied for info on a sheriff i found after gaining some smarts from book/deans list and it was a waste of time. He talked to me like i was just a waste of his time.
Only real good ways of finding info on what im getting into could be found with county resourcing. Any others let me know..

You need to get at least three comparables (properties that have sold recently)and determine the average selling price per square foot of the comparables and now multiply that figure times the square footage of the home you are looking at and that will give you the price you could resell the house for. Your offer needs to be well below this FMV.

Rather the property is a foreclosure, preforeclosure or just plain for sale, it will always be important to know what the fmv is at the time you are making an offer. Be sure to receive the comps from your agent. (sold properties in the last 3-6 months within 1/2 mile of target property, and building style and beds & baths the same). that will always tell you were the asking price is vs the fmv.