Help Fast Before Property Goes!!!!!
I need help!!
There is a property for 220k that is worth 235k and is a great deal, but this is the situation: there owner of the propert is fixing the property and will sell more when done in a week or two but she is offering it to me as is for 220k and the maintinance is being fixed as we speak. The key fact here is that the property is yet to be put on the MLS the owner says that she will put it in the MLS when maintinance is done. I am confused should I put a small fee to close the deal while I find a buyer and get reinbursed or just wait it out to see if the current buyer will want it? But what if he decides that he does not want it and than the property goes to someone else? Help!!!!!!!!!! :-o
So you have a buyer, or not? Who is "current buyer"?
Buy for 220k, sell for 235k, that is only a 6% ROI. On a home in that price range, that is not a very big return. Are you looking to assign it to a retail buyer/end user? If so, put a contract on it subject to buyers inspection prior to closing. If you are going to assign it to an investor, you need a bigger return.
I think I would negotiate a better price. If the seller lists it with a realtor for 6% commission, the seller will only net 220k anyway, and have to wait and see if the realtor does his work and brings the seller buyers. You have someone NOW- no waiting, close in 30days. That should be insentive for the seller, and not having to wait out contractors- they never finish on time.
I am fairly new at this, so this is just my opinion. But the investors I just talked to yesterday want a 15-30% ROI (return on investment).
Good luck- remember , if you don't get this one, there is another one around the corner.
I didn't fully follow the details, but if you're buying in the middle of rehab, watch out for what you're getting.
What the work done right
permits
inspections
etc.
You can be walking into a rats nest.
Caseycat is right, 15k on a deal this size is not that much of a deal. If you're looking at this as an investment property, My advice would be to keep looking. Unless she is offering great terms like owner financing at really favorable rates etc.
I don't think this is a good one. NOt enough blue sky there and too much that can eat up the "possible" 15K equity.
I would offer a lower price or walk away to my next deal.
[addsig]
if you have financing for 100%, can u offer cash for a lower price, or just walk away?
if you have financing for 100%, can u offer cash for a lower price, or just walk away?