OfflineYou know how short sales are never "short"? This one was no exception. I put an offer on this townhouse over a year ago for $110k. With other offers around $130k, $125k, the bank didn't do a thing. So it has been sitting empty for about a year and the house was going to foreclose. I heard about it and contacted the listing agent that I worked with before. She told me the bank had forgotten about this house and were ready to move. I renewed my offer of $110k cash and within a week obtained approval from the bank. We closed the following week.
Using a private lender that I've worked with before, he paid the earnest money, closing costs, and the cost of the purchase. I sold the house to a family member for $120k two weeks later. After closing costs and fees for the lender, I walked away with over $4k. Not bad for using NONE of my own money! The good thing is, I help out family to get into their first house with equity. That's so hard to do in this market unless you know someone who knows what they're doing. I have another family member who wants to buy in that same area. Now we just have to rinse and repeat!
patience and persistance pays AND you helped someone...now go repeat
Mike
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I guess it was a win, win for everyone. A piece of the pie is better than none at all. Well done.
Sandra
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not bad to get $4k out of nothing... even if you had to wait a while for it... it's still $4K more than what you had before!
Now keep 'em rollin' in...
Valerie
Valerie
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I think that the time was still reasonable considering you were working with a short sale and all.
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keep doing deals like this and you WILL change your family's financial DNA!!
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Way to go, and helping family at the same time...can't get much better!
That's a way to get creative, though. Way to go!
Using a private lender that I've worked with before, he paid the earnest money, closing costs, and the cost of the purchase. I sold the house to a family member for $120k two weeks later. After closing costs and fees for the lender, I walked away with over $4k. Not bad for using NONE of my own money! The good thing is, I help out family to get into their first house with equity. That's so hard to do in this market unless you know someone who knows what they're doing. I have another family member who wants to buy in that same area. Now we just have to rinse and repeat!
good job TK!
Don't Wish the Past, Create the Future! - DH
What would be a FMV on the house? Trying to gage what to offer on REO's. I've tried to get the bank to take some low offers and haven't figured out how much they are willing to eat on SFH's yet.
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
That's an amazing return with 2 weeks turnaround.
Way to go there.
- Truly believe in yourself! -
Dennis
Sheila, the FMV on the house is $138k. REO's are different than short sales. Buying short sales is definitely a game. We put an offer of $110k on this house over a year ago and the bank wouldn't entertain it. Then we put in the same offer and got it. They were desperate to move it fast. I'm not sure with REO's but put in an offer and see if they take it. You never know. Also, be persistent and patient. It'll come through for you!
A friend of ours is an REO buy, fix, and hold guy. He has about 2 dozen in our town. He makes some pretty low offers and they always seem to get accepted within a couple of weeks. I haven't seen too many that I really want in our area yet. When we have made offers, the bank sits on them for several weeks and somebody with more money than brains buys it for near market value. There are very few REO's around here anymore, the only ones left are really bad dives in the worst area of town. I wouldn't take them if you gave them to me. A FMV of 138k on an REO would be huge here, if I found one here we might move on it. Congratulations!
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
Way to go back and work your old leads! This
was truly a win-win for all parties!