Anyone done a a lot of foreclosure deals?

Question

Hi guys,

I have gone through all the bigger pockets books and have been putting in offers  for sometime.

This is the first one I have gotten some trAction on; the bank has come back with comeback with your best offer.

I think the ARV - $330k (do you agree?)

70% - ARV - $231,000

Repair budget - $20k

I put in an offer at $210k with financing.

Should I go lower and use hard money lenders?

This is my first house ever and don’t want to screw it up.

https://www.redfin.com/MO/Ballwin/2-Finlay-Flds-63021/home/93532968?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

If someone could just help me make sure I dot my it’s and cross my T’a on this one I would REALLY appreciate it.

Account Closed · Answer

This looks like a retail deal, a lot of foreclosures you can't get into and don't finance. I would look around and verify that 20k is a reasonable budget, its very easy to blow through that during a rehab.

I am guessing this is for BRRRR?  You have to define your goals, know that market, and also validate those assumptions, to determine if it would likely be a success.

Lee VanDenBroeke · Answer

@Abdul Jabbar Khan 20 K seems like a very thin budget for rehab on a house that is worth that much money. In my experience, the foreclosure homes are in horrible condition and take extensive rehab.

Abdul Jabbar Khan · Answer

@Abdul Jabbar Khan

Correction: the bank is saying the have multiple offers and calling for there best offer.