Lowell, MA · Member since 2017 · 143 posts · 37 votes
Hey BP family. Need help getting started. There's a house with lots of potential in my city Lowell MA. It's a short sale asking price $200k that's subject to lender approval negotiated by an attorney. Also a short sale fee $5k. The comps around the area ranges between 340k-360k and up. I'm thinking the ARV will be in that range. I have a realtor I'm working with. I want to Flip this house and sell it. What would be my course of action step by step??
Your Realtor can provide an estimate on the ARV for you and then start plugging in numbers to estimate your rehab, holding costs and resale costs. If those look favourable, write an offer!
Once accepted by the owners, you wait:)
Expect a short sale to take time, and the time is unpredictable. Depends on the lien holders involved. Make sure your Realtor uses a time frame in the offer/ short sale paperwork where you can exit the deal if the lien holder answer is taking too long. You can always extend the response period but you can't shorten it.
You don't want to be tied up waiting for 6 months without a chance to exit the deal!
Your Realtor can provide an estimate on the ARV for you and then start plugging in numbers to estimate your rehab, holding costs and resale costs. If those look favourable, write an offer!
Once accepted by the owners, you wait:)
Expect a short sale to take time, and the time is unpredictable. Depends on the lien holders involved. Make sure your Realtor uses a time frame in the offer/ short sale paperwork where you can exit the deal if the lien holder answer is taking too long. You can always extend the response period but you can't shorten it.
You don't want to be tied up waiting for 6 months without a chance to exit the deal!
Realize that the listing price is just that.....it has bearing on the value the bank will accept. You can negotiate, buy, rehab and flip if it makes sense, but unlikely you'll be able to wholesale it as the bank will require a legit loan preapproval or POF to entertain your purchase contract.
Your numbers are very vague and frankly they don't sound all that good at list price. I think before moving forward you need to get more solid numbers together...this is not currently sounding like much of a "deal"