OfflineHey Everyone,
We're back. Been away for a bit but, just got back from CA and the Inner Circle meeting and we're all fired up again.
I heard today on an offer that we put in 2 months ago. I guess the bank is finally tired of sitting on the property and may have decided to accept our offer. Before I re-send my offer I would like to run the numbers past someone.
Mike M., you out there? LOL
FMV is $170,000
Rehab is $20,000
I am thinking of offering $90,000 to the bank and reselling to our buyer for $100,000 (that is 70% of the FMV - rehab).
Since it's bank owned we can't assign it. So, we have to do transactional funding or hard money. I'm leaning toward trans funding because I just want to get this done quick.
So, I figured in the cost to Insiders Cash, $3495. I also had to figure in closing costs for the resell to the buyer, $3,000.
That would leave us, hopefully, a $3,000 profit. It'll be cutting it close.
Yes? No? What do you think? Did I figure it out right or wrong?
Thanks!
Allen & Denise
Denal Enterprises
So, I offered $85,000 for the house. My realtor just emailed me and said:
I just spoke to the listing agent. She is checking with the bank to see if they have been paying the taxes. If you decide to go forward with this offer, they require that you have your attorney review the contract and basically get it out of attorney review before she will even send it to the bank.
You attorney has to say you agree that the house is being sold "AS IS, WHERE IS" an that it is being sold subject to NO LIENS OR ENCUMBRANCES.
Your attorney also has to complete a preliminary HUD-1 form showing your side of the deal, which includes the sale price, his fees, title search and survey fees, taxes to be paid or pre-paid. etc., etc.
HUH??? I am not willing to shell out all of that money for attorney's fees before I even know if they accept my offer.
Ugh!
Allen & Denise
Denal Enterprises
Why didn't you think about putting it under an LLC and assigning the LLC?
I did put it under our LLC.
Allen & Denise
Denal Enterprises
The numbers look good. My TF guy is 2% no fees. He requires $1000 deposit but refunds it 100% the first time you use his TF. So your costs including the sign up fees would be $1800 based on a $90,000 purchase. WAY better than that other company!
Based off the info on your 2nd post, you have to use a closing attorney in your state? If that is the case, call around, you may be able to find an RE attorney that will accept payment at closing. To me, you need to know all of the costs anyway even though your percentages cover those costs.
These banks are getting wise to investors locking up their properties and then not producing. For now they seem to be working against investors, you just have to do what they ask in most cases if you want a chance of your offer being looked at, let alone accepted. Just does not make sense with all the inventory they are sitting on. It is not the banks, it is the government! How do you fight that???
Anyway, good numbers on this one guys!! (providing your ARV and rehab numbers are accurate) Now you just have to get that offer looked at or move on to one that does not have those requirements.
PM me if you would, I have a couple of questions.
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site