Posted by JT - IN on June 25, 2001 at 08:25:21:
The realvance of what the bank paid at Sheriff Sale, may not be a true reflection of what they have invested in the loan. Conversely, what they have invested, has no bearing on FMV, (fair mkt value), or ARV, (After repair value). The 26K that thye paid at SS will likely represent the 2/3rd of court appraised value, (appx 39K), whcih may be where they are getting their info for mkt value, which is again, a bunch of hooooy.
I think that you are on the right track with the 20K number. Make the offer, and when they counter, make that same offer again. And when the counter, amke the same offer again; you get the point. Get the idea accross to the bank that that is what you are willing to pay for the property. Based upon the description of market activity, (non-existent), I think you may be in the driver seat here.
Now, the ever important exit strategy. This means, how and when are you going to fix, sell, profit, etc. on this profit. Think your strategy through completely, as if you already own this property and are now going to fix, sell, etc. Map out your every move, in detail. Now if there is any detail that you cannot clearly see, (visualization), then youneed to be answer that dilemma, before you proceed, to purchase this property. Kind of like fast forwarding the situation now, instead of waiting until you own the property, or problem, then realize that there is something that you have overlooked.
JT - IN