OfflineHello,
I have come across 2 possible deals but I'm not sure how to approach it.
PROPERTY 1:
Property: SFR/3 beds/2 baths/ 1450sqft
Asking price: $27K
Retail Value: $51K based on appraisal
Equity: $34K
Loan balance: $17K
Behind on payments $600
Repairs required = guesstimating $8-10K (flooring, cabinets, tap & bed, trim, paint, fixtures, a/c compressor).
Reason for selling: The owner is locating.
PROPERTY 2:
Property: SFR/4 beds/2 baths/ 1750sqft
Asking price: $??
Retail Value: $172K based on appraisal
Equity: $102K
Loan balance: $72K
Behind on payments $2,600
Repairs required = minor.
Reason for selling: financial
I know that I do not want to hold these properties because I only want to do cash deals right now. I know I could assign them to a buyer on my list.
What offer price could I present in these cases? I would like my profit to be $10K or more. $5K profit would be the minimum desired.
Any suggestions most welcomed.
I'LL take property # 2 for 100. bails them out and gives them money to start over and also leaves you a chance to make a decent profit. maybe sell to an end buyer for 120 leaving them 52 in equity.
Property# 1 in my opinion will run too close to FMV After your fee and repairs.
I agree with B.C. I'd chose number 2 as well, for around 100K. Maybe less if they are desperate to get out. I like leaving homeowners with a decent amount of money just so they don't feel like they were taken advantage and don't give investors a bad name. I'd try for #2
Kai
Money won't fall into your hands, you have to earn it!