OfflineThis is my first deal so any advice on how to proceed would be much appreciated.
I have a potential deal in the works. Bank owned, here are the numbers:
Asking: $50,000
FMV: $65,000
Repairs: $15,000 (estimate)
ARV: $125,000
Rent: $1000 - $1,500
Taxes: $3,597
I'm thinking of offering $35,000 due to repairs needed and from from recent comps in the area. An identical property next door sold recently for $125,000 and the bank are motivated to get it off their hands so I think this is a deal. The agent needs proof of funds which I don't have so I'm contacting banks to try and get pre-approved. I'd like to get it under contract to present to my buyers.
Is it possible to put in an offer without proof of funds? My agent has been great and I don't want to waste her time. I also thought about birddogging the deal?
Thanks for your time!
Hi Chris - any update on your original offer? Reading through the thread, looks like you were waiting to hear back from the bank (Oct 8 posting).
Just curious what they said - good luck!
- Tom
Still waiting! The bank ordered a second BPO. I'll keep you posted though.
Thanks for reaching out -
After an intense couple of weeks with Hurricane (we were lucky and my prayers are going out to those less fortunate) things are getting back to normal and I have a chance to get back to this site
I finally got a response from the bank. They want the full amount of asking. I have the name of the bank through my agent and am considering contacting them direct to build a relationship - they might have more property available. Also considering raising the offer to 70% of asking and going back to them next week.
After a couple of weeks thinking the deal was dead I had a buyer contact me wanting to move forward with the deal. I found out this is in fact a short sale, the bank want 50k and I offered 30k which was rejected and my agent says they won't accept anything less. I still think this is a good deal at 50k and have a buyer that wants to move forward on this at 50k. Trick is I'm trying to work out how I will get paid? At this stage I'm thinking a straight forward birddog fee may be my only choice as I have already discussed the 50k asking price with the buyer. I could offer 45k but figure the fees of a double closing would eat any profits. I want to start off on the right foot with this buyer and not be greedy so I think a birddog fee would be a good deal for both. I'm looking at making offers on other potential deals in the same area so a good start to this relationship would be great. Unless anyone has some insight on a win win for all involved?
Once again thank you for all your valuable insights thus far on my first deal