Structuring the deal

[Clifford Datan]

Hey all, my wife and I are looking to purchase our first investment homes and will be out of state. We are currently pending on our HELOC that we will be using to fund the down payment of which will be coming sometime hopefully this week.

The investment home is essentially a new construction home going for $255k. I understand that this may be a new construction home and all builders are different as well as the shifting of the market but, I was wondering to make the offer below and want to see if this is something that makes sense or if it’s not a realistic approach.

Happy for any feedback, thank you.

Current sales price: $255k

Offer: $204k (80% of sales price)

Down payment: 20%

Total Loan: $163,200

Closing Cost: Builder to pay

[Nicholas Misch]

Quote from @Clifford Datan:

@Andrew Garcia

Thanks for the advice we are looking to purchase the investment home in Arizona. I envisioned that the offer may not be as realistic as I had hoped but I thought to ask and see what others inputs are as this will be our first investment purchase.

I can't speak to the Arizona market specifically as I do not live there, however it seems to me that most decent pre-owned homes are going for way over list in most markets and due to the extreme lack of inventory I don't see a builder taking an offer under asking. That being said it will never happen if you never try! :)