Need Help With A Deal
This house is in nice condtion, seller needs t o get out, but is asking $260,000 which is right at the market, according to my comps. He did indicate he'd go for a discount, but I don't want him to freak.
What would be a price that I should offer. I'm still a little unclear. A 20% discount would be $208,000. I would imagine he'd flip right out at such lowball offer.
What could I probably be able to flip it to a wholesaler for? I am still in strong market.
Would $225,000 be too much to offer?
Please advise.
Congrats on finding the deal, you are in a hot market! You can give the seller his price if you are taking it "subject to". If he is expecting a cash sale, meaning you have to go out and get a loan or finance him out somehow, I believe 20% back off of market value would be my Maximum Offer. Keep at it! You can call if you have any questions.
If you take the property at FMV you must be looking to hold? I thought as an investor that if your offer didn't insult the seller, you were offering too much?
Is this property in Henderson or in Vegas itself? What is the REI market like in Vegas?
It's in Vegas. It's been a very strong market. Some say it's going to "level out," but I don't know. Weird CA has been driving a lot of people here, and we're pretty sane by comparison (just a little humor)!
how can it "level out"? you have, I believe, approx. 4,000 people moving there each month and you're running out of land?
of course, you're also running out of water...that's the only way the RE market is ever going to "level out" in LV. :-D
Exactly. I've heard figures as high as 6,000 a month, and that is NET, even after figuring the people who leave, but I say about 5,000 to be conservative.
People have had to go on waiting lists for new homes, and many existing homes have been selling for over the asking price.
When I go to look at MLS properties which appear to be discount fixers, there are USUALLY cars of investors there at any random time I show up, viewing it at the same time. One time, the Realtor I was with even locked some people out until we got done looking.
Being able to view something alone is a rarity, and I haven't had any of my discount offers accepted yet. They've all come back rejected and not countered.
I do hope we don't run out of land and water.
Rambler:
Not enough info to help with this. He's asking FMV ($260K), but also "needs to get out".
What does he owe on the property?
When does he HAVE to move?
What's he planning on doing after he leaves: rent, buy another house, etc.?
Is he behind on payments? If so, how long?
If he has equity, does he need it all right now or can he wait until you sell for his money?
The advice about giving the seller his price if you take it sub2 is not exactly right: taking it sub2 means you're leaving the existing financing in place (his mortgage), and giving him either some moving money to get him out, or a note for his equity. If he wants cash, you'd have to be sure a) you can that much out of the house when it comes time to pay him and b) he'll wait for his money until you either refi or sell (unless you've got the cash right now).
Andy
What does he owe on the property?
When does he HAVE to move?
What's he planning on doing after he leaves: rent, buy another house, etc.?
Is he behind on payments? If so, how long?
If he has equity, does he need it all right now or can he wait until you sell for his money?
1. He owes $125,000
2. He can either move right out, or he could rent back for a few months, according to him. I think he wants to move back east. It appears that he would have some flexibility, but that would be if he would receive the cash.
3. He is going to scrape up enough to make the Sept. payment tomorrow, and is not behind.
4. I get the impression that if I make him a cash offer, he would expect to get it right away, but maybe I could work a 15 to 30 days time frame for closing, which I would need to be able to flip.
Please tell me what you think, based on this.