My hair is on FIRE!! Feedback on Pricing a Distressed Property with Distressed Title
Hey BiggerPockets,
Long-time reader and starting to post more often here! I’ve been all-in on real estate for a while now, seeing opportunity where everyone else sees problems. With real estate I am doing everything I can to help investors acquire fast. No average thinking. No settling. I also believe real estate shouldn't be about buying “cheap” — but instead be about creating massive value and building real wealth. That’s the lens I’m bringing to this one.
I've got a solid lead on a distressed residential property (needs heavy rehab) with a seriously clouded title — multiple liens, probate complications, the whole mess. This thing is straight-up unsellable on the open market right now. Traditional buyers and agents won't touch it. Zero retail comps apply because it can't even close with conventional financing or title insurance in its current state. To make matters worse, I have a listing agent who doesn't see the ARV value the same as myself and my team and we are using the MLS just as the same!
I ran the numbers hard: after-repair value, full rehab costs, holding costs, title clearance expenses (attorney, back taxes, liens, etc.), and the profit margin I need to make this a true play once stabilized. I came in with what I believe is a fair, aggressive offer that reflects every single risk and headache. It’s already a deep discount because of the condition and title issues.
Here’s what’s blowing my mind and where I’d love the community’s straight feedback:
How do prospective buyers STILL argue and push back on price when the asset is already this distressed and literally can’t be sold to anyone else? The seller (or whoever is representing them) is still trying to negotiate up or squeeze more out of the deal. It’s like they’re treating it like a pristine, turnkey property with multiple offers.
Is this just human nature? Do people automatically believe they can always take another 5-10% off any negotiated price, no matter how motivated the situation or how big the problems are? In this fast paced side of real estate, you either dominate the deal or get dominated. But man, sometimes I feel like I’m negotiating with people who don’t see (or don’t want to admit) the mountain of risk they’re asking me to take on.
I’m standing firm on my number because the upside is huge if we clear the title and execute the rehab right. But I also don’t want to be leaving money on the table or missing a blind spot that experienced BiggerPockets investors have seen a hundred times.
The asking price is $245,000 with an ARV of $415,000 in the E. Shearer Hills of San Antonio, Texas. The necessary rehab and renovation budget puts as at a total of around $45,000 !!!! House presents well and even has a 1 bedroom 1 bath studio apartment on the side of the house where it used to be a garage many years ago.
So hit me with it:
- What’s a realistic discount/range you’d pay on a deal like this (distressed + distressed title)?
- Anyone recently cleared a messy title — what were the real costs and timelines?
- Am I being too aggressive, or is this exactly how you have to play it to win it?
Appreciate the wisdom, BP. Always looking to turn problems into growing portfolios!