If you are not embarrassed by what you offer, then its too much. What is the worst they can say NO?!?! Start at 60% (or lower if you feel like you can).
That is what I do and have acquired two properties for a lot less than I was willing to pay!
[addsig]
Well.......I submitted 78k to Novastar and they said they could not even consider that offer. They said 91k is the lowest they would accept to take it to a committee for approval. At 91k,. that is about 73% LTV and I feel that is too high for an all cash offer. I think I will reinstate the loan for 8k and take it over sub2 (100k). Then resell on a l/o. Any thoughts?
Jason,
Where is the home geopraphically?
If the home needs nothing done and you can flip it quickly it may be worth a flyer. Theres very little money exposed with 8K and a couple of payments. If you can sell it on rent to own and get more or lease to own, might even be better in an appreciating marketplace.
Key to longer term hold is to not cancel insurance policy and get another one to protect your financial interests. Also, get an authorization from the seller that is not dated so when you go to sell the property in the future you can give that to escrow to have them get a payoff.
Good luck
Thanks Bill. I wound up flipping it to a friend for 92K and he flipped it again for 93K. I just assigned him the contract for 1K and he put up the money and did the rest. It was not like the usual 5K-15K flips we do but I had no risk and it was easy. On to the next one....
Yes, it is a mortgage state.
If you are not embarrassed by what you offer, then its too much. What is the worst they can say NO?!?! Start at 60% (or lower if you feel like you can).
That is what I do and have acquired two properties for a lot less than I was willing to pay!
[addsig]
Well.......I submitted 78k to Novastar and they said they could not even consider that offer. They said 91k is the lowest they would accept to take it to a committee for approval. At 91k,. that is about 73% LTV and I feel that is too high for an all cash offer. I think I will reinstate the loan for 8k and take it over sub2 (100k). Then resell on a l/o. Any thoughts?
Jason,
Where is the home geopraphically?
If the home needs nothing done and you can flip it quickly it may be worth a flyer. Theres very little money exposed with 8K and a couple of payments. If you can sell it on rent to own and get more or lease to own, might even be better in an appreciating marketplace.
Key to longer term hold is to not cancel insurance policy and get another one to protect your financial interests. Also, get an authorization from the seller that is not dated so when you go to sell the property in the future you can give that to escrow to have them get a payoff.
Good luck
Thanks Bill. I wound up flipping it to a friend for 92K and he flipped it again for 93K. I just assigned him the contract for 1K and he put up the money and did the rest. It was not like the usual 5K-15K flips we do but I had no risk and it was easy. On to the next one....