Looking into purchasing a bank-owned property to rent out. Bank has it listed at $230k. FMV is closer to $175k based on comps and current market. Needs about $50k to make it livable. Bank can provide funding for the improvements.
Looking into purchasing a bank-owned property to rent out. Bank has it listed at $230k. FMV is closer to $175k based on comps and current market. Needs about $50k to make it livable. Bank can provide funding for the improvements.
Thoughts on what to offer?
Hey @Liz Uram, welcome to the BP Forum! How many units are in this property and what's the total monthly rent?
Looking into purchasing a bank-owned property to rent out. Bank has it listed at $230k. FMV is closer to $175k based on comps and current market. Needs about $50k to make it livable. Bank can provide funding for the improvements.
Thoughts on what to offer?
Offer the number that makes sense to you and explain why. Show photos if you can get them. You aren't going to pay their ridiculous number anyway, so offer what makes sense. Don't waste your time. If they insist they will only sell for $xxx, come back in 6 months when they reduce their number.
On one property, I offered $110,000 for a pre-foreclosure, because that was what it was worth. They wanted $175,000. I resubmitted the offer with photos, they turned me down. They took the property to foreclosure, no one bid on it. That was a good thing. It cleans up title.
I made the offer every month for 12 months. On the 12th month they accepted my offer. There are internal workings at banks that make no sense sometimes, but non performing assets are painful to a bank.