OfflineOk, I have managed to find a property on sale by owner for $70K
its a 4bed/2bath/2car garage
about 2264 sq. ft. on about an acre of land
its fmv'd from $176K-232K
Everything looks good with the deal, the seller is very motivated. The only problem I've run into is the fact that the seller purchased the property 4 years ago for only 30K. How bad will the previous sale price effect my margin to make profit?
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In looking at what you are saying, the seller bought the property at a discount, possibly a rehab for business or personal use. Now the seller wants out. It could be to move on, or to get out of a bad decision. I would say to you, to find out the sellers motivation to sell. It might let you in on some hidden insight, that could possibly make or break this deal for you.
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Hello,
SOTC.investmests it seems you have the upper-hand in this deal.There is two things that can be wrong with an property,(1)Structure-(2)property! Property can hold more than one problem/Never the less,Get contract with escape built in and find the issue with this parcel!
Invest in yourself!
Get a thorough inspection.
See what is good or bad about the propety, If there is something, can it be fixed and still be a deal.
Find out the comps in the area. (Excluding this seller buying this property)
How does it compare and what is the area like?
As Angela said, get the property inspected. Have a professional see if anything needs to be done, the costs, etc. Ask the seller why he is selling. Once you find out let us know and keep us updated. I wish you look and I hope this can be a good deal for you.
Jeremy
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This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
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with everyone else - most likely it was a rehab investment at the time of purchase, and 70k to them will be a nice profit. Is it in good condition? But of course you need to make sure of the propery with comps and an inspection as advised. Get one that goes to the core, not just cosmetic - such as electrical, underground oil tanks, foundation, etc. If all is well the number sounds like a great deal! Good luck and let us know.
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SOTC.Investments, find out how much is still owing on the loan. If the amount is 0, then it will be to your best interest to low ball the offer, still taking into consideration some profit to the seller. Good Luck.
Sandra
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They might have bought it for $30k with a mortgage, then got a 2nd or more on it for improvement. They could owe every bit of the $70k for all you know. Either way, do your homework and find out where they are positioned, they might owe nothing.
Regardless of what they owe, you want to get low as possible, but knowing what they owe helps you get an idea of the range they are willing negotiate in. Always start low... you can offer up. Because if they take your original offer that was too high, not so much left to move down.
In the end, figure out the price that makes it a great purchase for YOU, and that is what you want to get it at whether they owe $0 on it or $200k. =)