What Or How Do I Make This Deal Work? This One Is New To Me?

owner file chapter 7 and property is with trustee. the 1st and 2nd lenders DID NOT show at the 1st meeting of creditor.

85 arv

130k 1st

50 2nd



??????

Comments(5)

  • smithj220th July, 2007

    I just wanted to clarify that the numbers above are right.

    The ARV is lower than the 1st lien alone?

    Wow, if this is true, then this is definitely one project I would walk away from.


    JS.

  • estateXchange20th July, 2007

    Is $85k the ARV or is that the price you feel it is worth As-Is?

  • RALPHN50421st July, 2007

    Sorry it is $185 arv. so now what do i do?

  • estateXchange23rd July, 2007

    What are the repairs?

    $185k
    * .65 (many people use .70 but .65 allows for closing costs)
    = $120.25k
    - Repairs
    - Your assignment fee
    = Your highest price to pay


    [ Edited by estateXchange on Date 07/23/2007 ]

  • rickpozos25th July, 2007

    There is almost always a way to make a deal work. You must be a little creative but more than that, you must know the many aspects of the real estate business.

    You can offer about 2k or 3k to the 2nd. They will be happy to get that if the 1st is going to take the property. Then make an offer to the 1st. The 1st will probably take about 60 or 70%. Since the 1st has a good LTV to begin with, you should be able to get this property at about 50% of value.

    You must be able to close pretty quick with cash, or a partner who has cash readily available. I made an offer on a note of below 50% of value for a non perfoming note. Great deal. The lender said: "Great, fed ex the money to me by Friday and I will have the package for you on Monday. I had to scramble to come up with some quick cash, but got it done. I have done a few more deals with that lender because I did close when they wanted to and they got rid of their headaches.

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