Updated over 15 years ago on . Most recent reply
What to do?
A seller wants to sell their house for 49k but the property is worth about 40k and it's in a pretty bad area. Should I take the deal and if so, how would I structure this? Thanks.
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Jon Holdman
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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
No, that's a terrible deal. If its truly worth $40K, and is in pristine condition, don't pay more than about $28K. There's no way to structure that into something profitable, unless you have a buyer on the hook who will pay you an even higher price and will actually close.
Now, if the seller want's $49K because that's what they need to pay off the loan, then perhaps you can work out a short sale.
Its easy to find bad deals. Much, much harder to find good ones. Keep looking.