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Real Estate Deal Analysis & Advice

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Hot Deal on My Hands??

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Posted Aug 3 2008, 10:54

Good morning everyone,

I hope your week has been good so far.

I need your analysis of this possible deal that my realtor tossed my way.

Seller is facing foreclosure. In order for the seller to stop the foreclosure she will be paying $12,000. The ARV is $349,900. She is willing to sell me the property for $270,000 (which is the amount she owes on the property). I am planning to wholesale this deal to an investor for $280,000.

Tell me your thoughts please.

Some details about the property:

Townhouse
BR: 3
FB: 2
HB: 1
Style: Colonial
Construction: Brick
Repairs: Updates throughout

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Minna Reid
  • Real Estate Broker
  • Jacksonville FL & Middletown CT
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Minna Reid
  • Real Estate Broker
  • Jacksonville FL & Middletown CT
Replied May 22 2007, 07:18

I think no investor would pay you over 244 for it MINUS the cost of repairs, and you'll get stuck with it.
You really need to be buying at 70% of ARV minus the cost of repairs, minus your fee.

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Ryan Webber
  • Wholesaler
  • Amarillo, TX
659
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1,981
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Ryan Webber
  • Wholesaler
  • Amarillo, TX
Replied May 22 2007, 08:32

What's your market like right now?

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Replied May 24 2007, 20:30

If you already have an investor then I would say make your 10k and go. If you dont I agree with Minna. You should stick around 70%. Right now in Michigan our market is so bad we are buying in the 50-60% LTV range. Good Luck I hope you make some money on it!!

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Todd Hutcheson
  • Wholesaler
  • Orlando, FL
251
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111
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Todd Hutcheson
  • Wholesaler
  • Orlando, FL
Replied May 27 2007, 17:36

nobody would buy that dog I know of , wait for a better deals