What Would You Do??
well here's what happened to me in the new town i'm moving to. I looked at some repos and ran the numbers and gave an offer. Here's the numbers
3/2 repo bank will only take 56,900
FMV 80,000
repairs 10,000
So i put in an offer for 35,000 and got told that the agent for the bank said don't even bother. I had looked up a comp on the same street that was 56,000 and a 2/1 so I thought they were a little overpriced on the asking price hence the reason i went lower. My agent went on to tell me that a 10% below asking price in this town (only 35,000 people) is considered lowballing. Where i live 10% is the norm if you weren't trying to invest. She also said that most houses go for their asking price or maybe 2-3% below. BTW - i asked for sold comps but i didn't get them until the day i made my offer. I was in a rush because I was traveling that day to go back to where i'm from. Anyways, of course I ran the numbers at that range and they don't look good. This is the same range of numbers i've seen over and over on the comps for rehabs. If that's the case, how will i make any money?
now here's where it gets trickier...i don't have a job in the sense that a bank thinks yet i have money in the bank and a good credit score but not enough money to buy. What would you do?
Dear Singh,
Slow down dear soul, you must get your feet wet in the present time culture of the area of DelMar in Sunny, er rainy Calif. You are getting mixed signals and only you can straighten them out. Sounds to me you are working in very good numbers, but Real Estate right now is on a Spike. Way way up with no return to speak of on rentals versus invested capital. So go slowly, get out mix. Check your friends from whence you came that got there first. Learn a little. I mean you do not have to buy the trip, but you must learn the local customes , mores etc. etc.
Enjoy, lovely area. Lucius 8-) 8-)
lufos,
thanks for the quick response! I'm actually leaving CA for another state where i don't know a lot of people. The reason i sound in a hurry is that i don't want to rent a place with my money earning a lousy 3% when I can own. I'm suppose to move in the next month so it's getting down to the wire. thanks again for your post