Posted by JOhn on July 14, 2005 at 19:01:24:
I assume you mean “Cash to seller” and not “Cash to buyer”?
Yes I did. Oops.
Any deal here - Posted by JOhn
Posted by JOhn on July 14, 2005 at 12:06:29:
1st mtg (2/1 arm, becomes variable 7/06 - 119,000
2nd mtg (HELOC) prime + 1/4 - 23,000
Back Payments - 3,000
Cash to buyer - 3,000
Asking Price - 148,000
Needed reapirs - 4,000 (max)
ARV - 175,000
I could try a short sale. But a concern of mine is it is 1:30 from my home. A long way to drive for a deal (minor remod, showings, etc). I am not completely sure of what I could get for a monthly payment if I lease option there because of my unfamiliarity of the area. Is there a deal here? I was tempted initially just because my phone is not exactly ringing off the hook with deals right now.
Thanks
Re: Any deal here - Posted by Will
Posted by Will on July 14, 2005 at 16:08:07:
I assume you mean “Cash to seller” and not “Cash to buyer”?
I guess it depends on the seller. You COULD try a short sale, but I don’t think anybody is going to take the offer if it includes $3000 in cash to the person who is hosing them. If you want to try to go short, you’ll have to get the seller to forego that money…THEN try to get the bank to agree to take the loss.
As for doing the actual deal the way you’ve got it structured, you probably aren’t going to assume those loans. Throw in another chunk for closing costs and your potential for profit gets even thinner.
Now, personally, I have another job, so I would consider taking a deal that was pretty thin just so I could “pay some tuition” doing that deal. If I thought I could get under 75-80% on a flip, I just might take it. If I thought I could make $12K on a rehab-and-flip, I wouldn’t really care that everybody at CREOnline was telling me that they thought I should never pay more than 70%.
But even with that in mind, this deal might really be too thin. Throw in the fact of three hours on the road every time you want to go put on a coat of paint and I would probably pass…OR I might try a short sale. I don’t know how much MORE complicated that can be with 2 mortgages.
Re: Any deal here - Posted by rusty
Posted by rusty on July 14, 2005 at 15:48:45:
Way too thin here. 136k is the absolute max you should pay here.
Re: Any deal here - Posted by Randy (SD)
Posted by Randy (SD) on July 14, 2005 at 14:53:40:
you’re at 87% of retail ARV (148k + 4k=152k)/ 175k = 86.85%…
if you want to pay retail you can buy anywhere… I don’t see a deal.