OfflineI have a motivated seller.
She had a short sale, 3 weeks ago, the mgt company refused the 67.500 offer.
The details:4B/2B/2car/Pool/1839Sqfeet/1.5Acre/Canal view,built:1973.
Needs new roof, drain in the bathtub,garage door need to be fixed, pool had a leek, was fixed, useable but old cement type, need new carpeting, original windows.
It was appreased 2 years ago for 80K.
A realtor was listing it for 72K , and 67,500 was refused.
1st Mrtg 64000, 734 adj monthly payment at 3%.
She is behind 9 months
2nd Mrtg 12000.
Property taxes and ins included in monthly mrtg.
SP/Sqf in the area for 4/2 is $86.57.
I am wondering, Can it work out as a deal?
All comments are welcome!
Zsuzsa
__________________
Hi Zsuzsa.
Not knowing anything else about the property or location I'll start here:
If the property appraised 2 yrs ago @ 80k more than likely it will appraise lower today.
1st mtg 64k + 2nd mtg 12k = 76k
Both roof and carpet avg around 5k depending on sq footage.
So lets say roughly 6-10k in clean-up and repairs.
Using DG offer equation FMV* 70%- repairs - your cut = offer price.
So say market value is actually 80k you would have:
80k*70%= 56,000-8k(repairs)=48,000-your cut= offer price.
Plus you say she is behind 9mo @ $734a mo? That is another 6k or so that has to be figured in.
Unless I am missing something it sounds like she is upside down or close to it.
Hope it helps.
Garold
Hi Zsuzsa why not try and work this deal and see what happens, you may want to have someone check out that pool, can it be fixed or is it to old to be fixed dont forget to do your comps on it.Is it locate near you? like to know how this turns out,Jim
jbischoff
The pool was fixed, so it's not leaking, by the owner's info it would cost 5K to renew.
SP/Sqf in the area for 4/2 is $86.57
I have a buyer, who is looking for any level fix up in the area.
I am just not sure, if the numbers would work fine.
I know, that the apprased value probably lower since 2 years ago.
But,by the RA's market analysis 4/2 was selling $86.57/SQfeet.
Even if I use the median SP/Sqf $57.57 *1839SqF the price is $105871.
So the ARV might be interesting for a handyman investor.
Maybe I am wrong.
Not saying no. Saying really do your due diligence especially where the numbers are close and repairs are involved. Get good comps & estimates and run the numbers then run them again. Trust your instincts, if you have doubts it's probably for a reason. Again the more you can find out about the property the easier your decision will be.
Wishing you success.
Garold
Hi Zsuzsa,
Although I am not terribly familiar with note deals, I know there are folks on here that are.
When a house is near/in pre-foreclosure and it seems there is a non-performing note here (payments are behind), I believe it is the perfect opportunity to go to the lender and ask to buy the note at a discount. You become the bank, but you do not own or control the property itself-- you control the note.
Buying the note at a discount may be easier and more profitable than buying a short sale. The prop has deferred maintenance and the payments are behind--
the lender may want to negotiate. Then you can deal with the owner or foreclose.
Can someone doing notes respond, please?
--Thanks,
Tina
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
I will search online about note purchase , maybe get some more info.
Zsuzsa
How long does it take and how much does it cost to do a judicial foreclosure in Florida?