OfflineHello everyone!
SO i see this house on ForSaleByOwner.com. I go by and drive by and the house seems to be in fairly good condition. I finally get the courage to call up the home owner and he tells me that this house is a short sale and then goes on and tells me he's a short sale specialist.
By running the numbers i saw this was a potential deal to assign to one of my cash/buyers.
House is 4 bedrooms, 2.5 baths, 1 car garage.
Asking price is $245,000.
Did some comps and estimated FMV is 315,000.
Before i found out it was a short sale i thought this deal had potential but obviously i know banks are not going to their property be assigned.
So where do i go from here? Do i do a double closing? Find a hard money lender? Try to see if i could be approved of a loan(doubt it)?
"Whenever you find yourself on the side of the majority it is time to pause and reflect."
-Mark Twain
Im thinking of going to Hard Money route.
"Whenever you find yourself on the side of the majority it is time to pause and reflect."
-Mark Twain
only if you have a buyer ready to buy property, otherwise you could end up losing more than your profit with a HML...
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
See my thread "Double closed REO, Made $12,000" for a great strategy for wholesaling short sales.
You must have a cash buyer and it must actually be a good deal for the strategy to work.
Here is a question. If the property is not selling at $245,000 what makes you think it will sell for $315,000 with no remodel/rehab costs???
If your buyer sells it for $315,000 he will have around $30,000 costs in commissions, closing costs, utilities, insurances, taxes. any cost over runs etc.
So that leaves him a net profit of $40,000 minus your fee and any rehab costs. If you charge $10,000 and it needs $20,000 fix up this is not much of a deal.
Get your numbers straight and either offer or walk away and on to the next (most likely on this deal) This is not a "great deal. It is marginal at best.
70% of ARV is $220,500 minus any repairs is where you should start with your offer.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Thanks for your response Michael, i appreciate it. I'm very sorry for the confusion but this house i didn't find online. It was another property i found online that had the short sale specialists number. Thus, when i called him today he told me that the property online was under contract but he told me about this property (the 245K) that NO ONE knows about.
So nobody knows about his property but me, at least by what the short specialist says.
As doing the drive by, the exterior looks to be in fair condition. Have to see the inside thought, thus my specialist says that i'm interested to give him and call and he'll arrange for me to go inside to check it out.
Thanks though Michael, i'll check out your thread.
"Whenever you find yourself on the side of the majority it is time to pause and reflect."
-Mark Twain