Yay or Nay on this Deal

[mzlady]

I have a property that is valued at $117,000 the other homes in that

area are valued anywhere from $117,000 to $152,000. The seller has

the home home priced at $107,900 and said that he would "at this

point take $101,000" I want to make an offer but not sure where to

start?? I looked up the property card on the home and the last sale

priced list was $65,500 he has put some work into the home sooo not

sure what to offer him, the home needs no work at all everything is

updated and new! Tell me what you think...

Thanks Mzlady

[brockovich]

Is your plan to flip this home or hang onto it? What is the story on the home with the current seller? Is he living there? Regardless, it sounds like you are considering offering a retail price on a home in which you need to get at investor level pricing. There are better deals available. You need to find motivated sellers. When did it sell for 65K?

[mzlady]

It sold for $65k back in August of this year, I am thinking he is an investor not sure..The reason that I am looking at homes that have already been rehab is because these were the criteria of a buyer that I have. He wants home that are worth at leat $100k and need very little to no work.

[nsu1997]

It sold for $65k back in August of this year, I am thinking he is an investor not sure..The reason that I am looking at homes that have already been rehab is because these were the criteria of a buyer that I have. He wants home that are worth at leat $100k and need very little to no work.

Run the deal past your buyer and see if he wants it and what's the most he'd pay for it. Then try to get it under contract for at least $5k less than that price. Then simply assign it to your buyer.

Based on the numbers it's definitely not what I'd consider to be a wholesale priced deal, not even close. But hey if it works for your buyer then do it. Fill his order.

If your buyer is not interested this could be a possible seller financing/lease option type of deal, assuming the seller goes for it and the underlying loan is a good one.

If the underlying loan is a hard money loan and your buyer isn't interested just forget this whole thing and move on.

[idhomebuyer]

Did you use the "If I paid cash ( ), and I can close quickly, what is the best price you will take?" question? Then, follow up with the other question, "Is that the best you can do?". For this to work as a wholesale deal, your offer would need to be around 70k to get your assign fee. If the value was more, you could offer more. There is at least a few options you could do here, if it's not a wholesale deal:

* Lease Option
* Subject 2
* Owner Financing

I hope this helps you.  (:

I have a property that is valued at $117,000 the other homes in that

area are valued anywhere from $117,000 to $152,000. The seller has

the home home priced at $107,900 and said that he would "at this

point take $101,000" I want to make an offer but not sure where to

start?? I looked up the property card on the home and the last sale

priced list was $65,500 he has put some work into the home sooo not

sure what to offer him, the home needs no work at all everything is

updated and new! Tell me what you think...

Thanks Mzlady

[Investrix]

so let me get this right... you're looking to buy this home that is "valued at 117k", which it's not worth since it's not being sold for 117k, and it's currently being offered around 108k, which it also isn't worth since he'll take 101k... and you're wondering what to offer?

this isn't going to work--i dont care what the comps say.  The property just sold for 65k a few months ago and now they're trying to sell it for 100k... This property was obviously just rehabbed by an investor, why would he sell it to you who is going to wholesale it to another investor who is then going to do nothing to the property and sell it for retail??  he wouldn't. ever.

unless you're going to give him the 100k.  I doubt a L/O or Sub2 would work here either because if this is an investor who's selling the home he'll want cash so he can bump to his next project.

I say Nay on this one mzlady.  Keep in mind that even if the comps pulled were selling at 115-120k, this particular home isn't worth that or he wouldn't keep lowering the price.

good luck! 

[nsu1997]

so let me get this right... you're looking to buy this home that is "valued at 117k", which it's not worth since it's not being sold for 117k, and it's currently being offered around 108k, which it also isn't worth since he'll take 101k

Motivated sellers sell houses for below retail value all the time...I have a $265k house that needs no work under contract right now for $155k. But I agree, Mzlady's seller is looking for a retail buyer. But he does sound motivated. No harm in offering some kind of terms, or as I suggested find out what the most her buyers would pay then go back to the seller and offer less.

[Investrix]

you're right nsu--it couldnt hurt to run it by the buyer.  like your first post said... find out what your buyer would pay for it, then back out 5k and that's your offer.

It doesnt even really matter what the value of the property is.  All that matters is how much your buyer is willing to pay for it.

[nsu1997]

Yep! I couldn't have put it better.