Need a creative strategy to save the day

7 Replies

I found a seller with a beautiful 75-year old home that needs a lot of work.

He and his wife bought the property in March with intent of rehabbing it for themselves.

Rehab estimates that they received were over $100k; they ended up buying another home.

ARV = $250

Mortgage = $210

I would like to make a reasonable offer for consideration.

He says his monthly mortgage is $620. So I was thinking of a Sub 2 maybe...

Any ideas?

Sandee Sampson

    This post has been removed.

    I appreciate your response... :)

    @Account Closed

    You're right, it doesn't make sense; however there are several really nice comps in the area of up to $400k. I was thinking with a nice upgrade of kitchen, bathrooms, etc. the house could sell for more than $250k.

    P.S. I'm new to this...I was just wondering if there is ever an exception to the formula or a creative way to help this family.

    Sandee Sampson

      Take it from someone who is getting her butt kicked on a historic reno, this is not a good strategy for someone new unless you are a contractor and know the construction numbers. Run away from this deal.

      Nancy Brook

        Here's my suggestion:

        Go rent the movie the Money Pit, with Tom Hanks.  You will find your answer long before the end of the movie.

        @Sandee Sampson

        Cost of paying off mortgage........$210,000

        Cost of Rehab..............................$100,000

        Cost of Realtor fees......................$15,000

        Cost to run away.........................PRICELESS!

        @Nancy Brooke

        @Joe Villeneuve

        Thank you for responding!

        That's what my gut was telling me...point taken!

        Sandee Sampson

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