OfflineI was wondering what is the best way to put in a offer on a bank owned property. The house im looking at needs a total rehab. Im looking for tips on how to present my case to the listing agent that i will also be using, I just dont want to go into this blind in the process giving the agent the upper hand like he going to show me how this process works.
The house im looking at is $50,000 and needs in the area of $40,000 in repairs. The house right next door just went on the market for $172,500. Im looking at using a heloc to do all my fianacing and then deciding on if I should sell or rent out to put a cashflow in my pocket ?
any help would be great
thanks, John
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Put together an offer package showing comps that establish ARV, show costs of repairs (bid from contractor is best), show holding costs for rehab time and average time to sell for your area. Explain that only an investor will take on this project, and that you would need to make a profit. Put the numbers together and make your offer.
Hope this helps, Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
Thanks for your replies I think that makes good sense, should I tell the listing agent to put together a offer package since he is the listing agent and knows how the bank like things done or should I tell him the direction I want to go in ?
I would collect the data, and write a letter, then give, what benifits you, to the agent. Let the agent assemble the offer package, because he/she will be the one presenting it.
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
Know your exit before you buy the house! Get an inspection with color photos to support what your saying about the renovation costs (submit along with the contractor bid) to complete the work to show the bank what all needs to be done to bring it back to salable livable condition.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.