Offlineit seems as if every lead I get the seller has little or no equity,and short sell are out.values are dropping so fast that everyone is contesting their tax assessment,DEAN HELP !!! how do we work this mrk in se.fl.???
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it seems as if every lead I get the seller has little or no equity,and short sell are out.values are dropping so fast that everyone is contesting their tax assessment,DEAN HELP !!! how do we work this mrk in se.fl.???
I did find one deal with equity
sfr 780 sf.,lg backyard/fenced.
assessed value $85.145
asking $60k,
repair cost-8k
only problem is,the values are dropping so fast that you never know what to offer.I was thinking of doing an option for 24 mo`s.
any thoughts on this one family ??
On the ones you said you found with little or no equity why was short sale out of the question?
There are plenty of properties with solid equity for sale, but those who aren't underwater a bunch may not be in a tough situation where they have to take a hit. You have to find just the right situation... like someone retiring, having to move because of job relocation, etc... Anita found a great lot properties through something similar.
Also, you don't have focus on just owners who have listed their homes to find built in equity. Go throw a bunch of offers at foreclosures low balling. When one bites you have your equity there.
If you haven't listened to this call check it out and pay attention to the part where Dean talks about assignments. It applies to all forms of getting deals that can cashflow or be flipped.
http://www.deangraziosi.com/content/reminder-conference-call-tomorrow-ni...
Look at the records and see what the previous owner paid so you know what kind of equity they have. Maybe they bought it 25 years ago for $10k, you never know.
Prices in a lot of areas are actually fairly stable over the last few months. When you graph inflation against real estate, we're actually where we should be historically. However, there are a number of conflicting indicators due to the mess created by the housing boom and financials.
It's hard to say, if it REALLY can comp around $85k and they are asking $60k, maybe offer at $40 or $45k. The worst they can say is no, and if you think it's a steal at $60 you can work your offer up to that. IMHO, there are way too many deals to get too focused on a single one and have to wonder if it is a good deal or not when you can find deals that you are amazed you locked up.
Also, if you're concerned about the market dropping a bunch then stick to assignments where you have no skin in the game. Frankly, it's hard to be worried about losing on a deal though, if you can get it at 30,40 or 50% or more off current fair value (fair value meaning what you could honestly sell it for easily in a short period of time). If the market takes a 30% hit from here there are bigger problems than worrying about being upside down on a mortgage.
the 1 with equity has no mortg.the owner got it for 30k way back,I offered 40k then 45k,she will not go lower than 60.It`s taxed at 85k so that`s lower than the FMV,but I will do comps on it.I use tax value because they are mainly lower than FMV.And this one seemed so eas I was hoping to get my feet wet with it.Also I told her she may be ablle to contest the assessment since values are dropping.This is Palm beach County Fl. here folks,plenty of supply.Just no money for buying short sales.