Updated almost 13 years ago on . Most recent reply
Absentee Owner - Yellow Letter
Hello Everyone -
I am in the beginning stages of REI and have 2 properties on contract w/each at about 60% of ARV and purchase price is coming in at about 58% of ARV including repairs on first property and about 62% of ARV on the 2nd - closing has been a little bit of a struggle (always get it in writing), my question deals with a 4th property that I found while driving home, distressed property that seems to have been up for sale at one time, but doesn't show on the MLS and has a absentee owner (CAD) - my question is what to say in the letter and is this considered a Yellow Letter approach to making and offer and purchase this property. I am also a little fuzzy on how to figure out the offer - the property is an older property, late 50's and is in need of some updating, approximately 15 to 20k on the high end of my estimates. Properties are selling for around 100k in the area. For that type of home.
I figured ARV of about 97k, which gives me about 58k at 60% minus 18k in repairs/updating leaves 40k, is this about right?
Any advise would surely be appreciated. Oh, btw I will be wholesaling the property - since I already have the other two rehab projects and looking to take on a 3rd.