Updated over 3 years ago on . Most recent reply
Below market value off market deal
Hello everyone I’m in a tough spot at the moment, I have found a motivated seller willing to sell me their single family home at 245k in move I’m ready condition’s I have not been in the property but I am assuming it is just outdated no major repairs needed. The market value of the property is between 270k-285k as is. I’m looking to do fha and move in for a year or so afterwards rent it out although the numbers do not work the expenses would be much higher than the rent. I don’t think I can Wholesale it due to it not being at low enough price for investment property or else I would just keep it for myself but it is at a price where it would be a great deal for a retail buyer. Another thought I had was to refer it over to a realtor I know and get a referral commission (I have a real estate license) but I really want to make this deal work as an investment property for myself. Any suggestions? There is also currently a mortgage on the property but the owner has a high equity position I was told they only have 4 years left on the loan. Thanks I’m advance!
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
Everything you wrote tells you not to buy the property in the first place. A "motivated seller" doesn't make it a good deal...like in this case. Just because the property is listed 40k less than market value also doesn't make it a good deal, it just makes the property less expensive than the similar ones surrounding it.
Deals are made based on the ability to generate a known spread between your cost and what you can sell the property for, or the spread between the rent and expenses. In this case, you have neither, so this isn't a deal...it's just a property.
My suggestion is to not buy it. There is no reason to...and every reason not to.