Deal or no Deal

Tammy,

don't get overwhelmed; what are you trying to do? It's best to start with one strategy, do it over and over, until you become an expert, then you can try other strategies, but you dont' want to try all of them in the beginning, because you will feel overwhelmed...

You probably will need an attorney on your team, but only use him when you have a deal, not before...

You are taking action, you're already ahead of many people...

I sent you another email. It is a foreclosure that I am wondering about now. I guess I need to find an attorney now that I am ready to jump in the water. Thanks as always, Tammy

so, whats the problem?

One deal is a lease option, one is a foreclosure that I would have to submit the offer to the attorney for the client. Home is 4000plus sq ft. going to auction in June. Have a buyer who wants just this type of home. but the home sold for 510K in may of 2004, but now valued on zillow at 395,200. I know they have two mortgages and believe they are at least 300K for the one or two , just don't know the value of the mortgages and then attorney said make an offer and we will let you know if it covers the mortgages. Want to offer 300K, will then have 95K to work with. Just don't know about the paperwork and legality to the attorney. We have to offer enough or they would just wait til auction I think as they have many other homes in town that will get auction and they are a famous family in towN? What to do? Thanks!

You can only offer what will work. You say you have to offer enough or it will go to auction. All of that is totally not relevant! None of the numbers you stated mean anything.
You need to determine what the property will ACTUALLY sell for in rehabbed/remodeled condition today in today's market on the street the property is located.
You need to find what the cost is to fix it up. (if any)
Then you will have the relevant numbers you need to base a non emotional decision on.

You also say if you offer $300,000 you will have $95,000 to work with.
Are you planning on assigning this to a buyer that has cash or one that needs financing and will be the owner occupant?
If this house is in perfect condition and is actually worth (will sell for) $395,000, I would not offer much more than $277,000. That is 70% of ARV. How ever I bet it needs some work and that cost needs to be subtracted from the $277,000.

Just my thoughts, Way TO Take ACTION!!! School is in session!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

No the home does not need any work. I am doing a title search on the home now. It looks like it may be that they owe more than it is worth, though, and so I guess this one will go to auction. Sigh. I thought 95K was enough to offer buyer equity and still cover expenses and our profit.

Seems that after getting the preliminary title report that the owner owes a lot more that what the home is worth. About 600K and property is 398K. Moving on! Guess this will go to auction.