SHORT SALE ~ DEAL or NO DEAL?

4 Replies

Not Sure? Received a call about a Triplex for sale initially @ $195K per another quote un-quote wholesaler, by the way his wife is a real estate agent. Supposely, the owner gave the property back to the bank.  As I dig deeper prior to submitting a contract, I find out the owner has a Lien "Yike" in the amount of $160K & per the whole sale it was reducted to $21K.  I did my due diligence and checked with the city & code enforcement states the bill is still accruing at $100 per day per for the past 3 years.  The owner refuses to hook-up the plumbing to the city sewer.  

Is this a DEAL or No DEAL?  Property located in a nice area and each unit is rented, Property needs a new Roof, Kitchen & Baths need updating.  Although, I predict the A/C & Electrical may need updating at some point not sure about the plumbing.   

Is it possible to make an offer on a short sale th

It depends. 

If you are a sophisticated investor and know how to perform your own due diligence, independent of this "wholesaler" and his anecdotal statements,then maybe you can get closer to the truth.

Now the truth may be that there is a great amount of title, financial and property improvement work to be completed. If you have the skills, the team and the capital, you might turns this into a deal. If not, keep looking.

Those who know how to market directly to sellers control the Dealflow. If you don't, you are at the mercy of other people and their systems for lead generation.

First, you have to decide what the property is worth, AS IS.  Then, you'd have to go through the whole short sale process.....listing, contract, negotiation with the lender and the city.....then if the bank agrees to a number you're happy with, then good.  If not, then no.  No way to know now.

@Michelle Joiner  

 I gave a vote to both @Rick H. above. Reading between the lines, it looks to me like your quote un-quote wholesaler  might actually be getting DESPERATE, not really wanting to renege on their contract - but, if you (or someone else) don't come to their rescue, what's the bet that they do renege?

And given that you have all these sensible questions, how are you going to find YOUR Buyer?  

There is usually good reason why wholesalers are not in the habit of buying from other wholesalers. In this instance, I can see multiple good reasons!...

Thanks everyone for your feedback!

The property is  not yet under contract pending a financial analysis for the property improvement.   I have been in touch with the City Compliance Department, a GC and plumber to determine if this would be worth my time and a great wholesale deal? I expect to receive all information later today.

This afternoon I will speak with the City Building Department to get an approximate of the actual cost for the projected sewer hook-up fee's etc.  I will then know if this deal is worth pursuing and if I should move on and seek other wholesale opportunities?.  

As for buyers, I have several interested  buyers.  But, not sure how long this process would take to close as a short sale with a lien needing this type of work and cost?

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