Urgent!!! How Do I Approach This Deal????
This lead came to me today. This house will be foreclosed next tuesday.
Comps are coming at 525-550K
1st and 2nd from the same bank, according to records, is about 400k. It is listed and the agent says that the loan is about 500k and also says the bank may take about 480k. Ofcourse I am not going to buy this at 480k. How do I approach this.
Do I talk to the owners directly? How do handle the listing part of this?
Thanks in advance for any suggestion.
From the numbers you gave it really doesn't look like that much of a deal. Say you get it for what the bank has on it 480K and unload it for 525K. That is only a 10% profit not factoring any costs. Unless your area is dfferent trying to unload a 500K house is tough. Don't flip those too quickly unless you have a buyer already in the wings.
Q
You don't.
Jumping in on a 1/2 a million dollar house with a spread of only 25k is a sure fire way to court disaster.
Got 450k laying around to low ball an offer and a buyer lined up for a 500k house? then by all means, jump on it right away.
But don't look for a shortsale if the bank has both notes and comps are going more than the loan.[ Edited by GWmson on Date 01/25/2004 ]