Hi every one,
I have the opportunity to make an offer on a bankruptcy case. There are multiple offers on it at this time so my question is, what should I offer if the asking price is 300k and the property is not in bad shape. There is already 3 cash offers as of now. Do you think the cash offers are the asking price or lower? Should I go for the asking price or how much higher?
Any advice will be appreciated.
People typically offer cash to try to get a discount...
That said, you didn't give us any info for us to even consider evaluating the offer. If the 4plex next door is valued at $1,000,000... great deal... if it's $50,000... probably not.
Thank you for your response, looked up near by Five Unit Complex with REDFIN Site what Sold in 2005 at 727k taxes for 2013 at $5,620 & another site gives value 525k and taxes for 2014 at $6,089.
Property I'm making offer is asking 300k for quick sale, taxes $4,307, 4 units 2bed 1bath all units, rent is 1k per unit. Utilities sewer and garbage landlord pays. Ins. $1,147 not sure if I'm considering all info to make the proper offer? Not experience as you can see, please excuse my ignorance I'm a bit nervous
Paying utilities and only getting 1.33% rent... that'd be a deal killer for me.
Taxes are reasonable though I prefer them closer to 5% than 10% but that's not possible everywhere.
Insurance is pretty good... I have 4 properties valued around $500k for $2,700.
I don't know the CA market to understand how good of a deal this is but paying utilities is a cash flow killer.
After paying for mortgage and utilities there still quite a bit left For profit. Can you explain why you say that paying utilities even though they're very little its a deal breaker after paying insurance tax utilities mortgage they're still like 1800 dollars worth of profit for the property, what do you think?
The best advice I can offer is never mind what other people are offering, but focus on what you feel the value is to you and whether you can make a profit on the investment.
Rico, please spend some time in the forums and blogs. Everything you're asking has been answered over and over in either source. I'm sure they're telling you 0% vacancy (all long term tenants, been here for years!)... oh, rents are under market... you can EASILY raise them $300 a month? Repairs? Never! CAPEX... what's that?!
Spend some time educating yourself... it's cheaper to read here then it is to learn on your own investment.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!