Need to find out what to do about this property
Fellow investors,
I am just getting started in rei and I'm interested in bird-dogging and wholesaling. I have run across a property that has some unique factors attached to it and I would like someone to point out my options.
Here are the specifics:
The house is an REO and the bank has stated that contracts may not be assigned for this property.
The house is being sold through a realtor for $134,900
The house sold for $180,000 on 12/11/2001
I've only examined the outside and it appears that the property needs about
$5,000 in repairs. (Pool needs to be filled in, roof replaced, paint job, window screens needed)
I was able to get three comps within a mile. ($174,500, $185,000 and $209,900 . . . average = $189,800)
So ARV ($189,800) * .7 - Repairs ($5,000) = MAO = $127,860
Of course, this is just based on the outside repairs. I still haven't seen the inside. I or my buyer would also have to negotiate with the bank to lower the sale price to something at or lower than $127,860.
So, I'm wondering what my options are at this point. Do you all think other investors would be interested in this if I were to birddog it for them even if they had to negotiate with the bank? Is there a way to gain control of the property at a price less than the MAO and still wholesale it to another investor? It appears that my only route is to get a conventional loan to acquire the property but I would not like the liability of having a bank loan if at all possible. Also, I'm not prepared to go through the rehab to retail process since I don't have a team in place for that and this would be my first deal.
What do I do?
Your advice and suggestions are greatly appreciated.
realdealer 
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