OfflineI'm looking for my first (killer!) deal. I just looked at a bank owned property in a very desirable neighborhood. Good floor plan, nice (overgrown)yard The bank is asking $188,100. It's only been on the market a few days. They will take only cash or a rehab loan. The comps tell me that when it is rehabbed, it should sell for $340-400,000. It very well may need $100,000 in rehab. The roof apparently leaked until it literally collapsed into the house in several spots. The wall beams are showing through the dry wall in some rooms from having been wet. The previous owners walked out and left much debris in the house and yard. Etc, etc.
The realtor is telling me that there are likely many offers in already. He tells me it will probably sell for over the asking price. Maybe as high as $22000. Is this likely??
How much profit would you consider necessary to take on such a project?
Thanks so much!
Blessings & Favor,
Gena.
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Your agent can only speculate, that any particular listing, will bring in multiple offers on it. It depends on the popularity of the area (location) whether or not that the listing will bring multiple offers on it. Call the Listing Agent for the property yourself and find out if there is any other offers on the table already. The profit you want to make, is entirely on you, keeping in mind MAO (maximum allowable offer) that your buyer is seeking.
The realtor is telling me that there are likely many offers in already. He tells me it will probably sell for over the asking price. Maybe as high as $22000. Is this likely??
How much profit would you consider necessary to take on such a project?
Thanks so much!
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Hello,
steinway024 the reason you want too be an Real Estate Invester,Is for many properties to pass thru your hands(I do not think you had one deal in mind). Your info on this property is your own,Only you know weather it is or not! But i was able to capture...You said desireable neighborhood,Your REO in question.I think one thing that all of us must understand is in following our dream...You are the deal,The property is secondary!!!Only you know the direction (Strategy)of what you want to achieve.AS far as your property,I would fake it too make it...Meaning do not take yourself out(your mind)but practice makes perfect and run with it/I really believe in a hot market,I know i can always flip-it.
Randall
Invest in yourself!
Go a head and make your offer based on your knowledge that you have lerned from Dean.If you get out bid so be it take it as a lerning lesson and move on to the next deal.
Bill
Gina, what is your plan of action for this property? Are you keeping it to rent for cash flow, a family home, assigning or flipping. It is only when your have a plan of action, that you will be able to strategize on what offer you will submit in order to acquire the best results. Of course your strategy will be based upon what you intend to put in and get out of the deal. In today's market it is important that less money is spent on rehab, taking into consideration the continual decrease in property value. I expect that you will take several things into consideration and make the best offer. All the best to you.
Sandra
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