OfflineI have a deal I am working on and I need some help getting the offer right.
It is a house that has an ARV of $195k. It is unfinanceable and in disrepair (will likely cost $50k to restore) but it is in a highly desirable area.
The owner wants $145k but I offered $105k, and she said she would let it go for $125k.
At this point we have agreed to table the deal until she comes down, is that stupid or are we in the right area with our offer?
My thinking is that a savvy investor will not buy the deal with that little equity, and a person that has cash and wants it as a primary residence will be overwhelmed by the scope of the project.
Please let me know if you think I should wait, or call her back and offer $115k-$120k.
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Does the deal work for you at 115-120k?
If your goal is to assign it to an investor, your numbers aren't adding up
ARV = 195,000
70% of ARV = 136,500
136,500 - 50,000 (repairs)= 86,500
If you want a 5,000 assignment fee for your time, your max allowable offer would be 81,500
You would need to offer less than 81,500 so that you have room to negotiate.
In Christ alone, I place my trust.
I forgot to say that this would be for an assignment deal.
One investor I am working with said he would do it if I could get it around $100k.
I guess this one isn't likely to work out.
One thing that is kind of strange is that Eugene seems to be full of delusional people that think their houses are worth way more than they really are.
Oh well, we'll keep on going until we succeed and then we'll go some more.
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