Is This A Good Deal?
Im currently looking at a REO property that has just listed that is in excellent, move in ready condition. The bank has listed it at 55k below FMV. It is in the top selling zip code here in las vegas (sold about 122 properties last month). First, would this be a good candidate to purchase and sell or lease purchase?Second, since this has just listed, what would be a fair asking price to start negotiations?
yes, good deal to you.
If I did my math right, it a 19% discount to FMV.
Quote:
On 2007-08-15 15:46, claptonfan wrote:
First, would this be a good candidate to purchase and sell or lease purchase?Second, since this has just listed, what would be a fair asking price to start negotiations?
Look at comps in the area. It has been my experience that when banks offer price significantly below market at the outset it is because there is a problem
Everyone has their own formula, but in my opinion price plus rehab cost should equal about two thirds of after repaired value (ARV).
ARV in my opinion is what I can quickly sell it for, not the most I could possibly get. In other words, somewhat less than comps.
Obviously getting the numbers to plug into your formula is the real difficulty. How much are those repairs actually going to cost? Once it is repaired, what price can I ask and not have it sit around waiting for a buyer that may never come? These are the hard questions...
Chris
I was saying .67 rather than .70, and not including the assignment fee. I think it is pretty much the same formula.
Chris
Thank you so very much Chris for taking time out of your time to help me. I really appreciate it and continue to be blessed.
I say
Maximum Offer=ARV-2500 or 30% - 5k assignment
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