Is there a deal here - Posted by Jay

Real Estate Investing
1

Posted by Randall Porter on June 22, 2001 at 14:54:37:

You need to know the answer to the following questions before you can make an offer on this property.

  1. What will the house be worth after repairs are made?
  2. How much will the repairs cost?
  3. What is your exit strategy for this property?

Post the answer to thses questions, and you will get some feedback about making offers on this particular property.

2

Is there a deal here - Posted by Jay

Posted by Jay on June 22, 2001 at 13:40:04:

I found this house that is a REO and is listed with a realtor now. The house is a 2bdrm/1ba. fullbasement, 1098 square feet. The house was bought for 26K in 2000 and the house is listed for $39,900. The bank is willing to finance with 3% down. I have yet to walk through the house, but its been on the market for quite awhile. I really want to make an offer just to get my feet wet at making an offer. Any suggestions on how to structure this deal, if any, and a good cash offer? I’m thinking of making an offer of 20k.

Thanks,
Jay

3

Re: Is there a deal here - Posted by Ronald * Starr

Posted by Ronald * Starr on June 22, 2001 at 20:49:39:

Jay--------------

If it’s been on the market that long, presuming a reasnably good market, it is way overpriced. I agree with Randall Porter’s post. You need to do more homework here. You probably also need to get out and do your Bill Green’s “100 house” looking. Don’t go making offers until you’ve seen at least a hundred houses in your area. You don’t know the market values yet.

Now, saying that, if you want some practice, make a ridiculously low offer, not expecting it to be accepted. That is ok.

Good InvestingRon Starr***