First Real Estate investment gone down hill

2 Replies

Hello everyone,

I tried my first investment. Here's the plan:

Buy  a house through short sale. (put in an offer)

Used the funds I have to repair the property. (little work needed, had 7 contractors to quote repair cost)

Get a FHA with down payment assistant to purchase the home. (already approved)

Live in the house for the minimum amount of time then sale it.

Here's the down fall"

My Realtor says the house is past redemption.

The bank would rather let the house go into foreclosure to get what is owed which is 78,000.

At the time I put in my offer after running some comps, the house was valued at 45,000. ARV

However since then after running some comps today the house could be valued at 77,340. ARV.

What do you all think?

I have been in this situation before. With several short sales under my belt I have had successes and failures. Sometimes the bank is down right insane and just forecloses. Remember that there are plenty of deals out there. Also consider looking at HUD homes. I have done the very strategy you are talking about and it works. Remember that HUD puts out a new list every week and there are usually plenty of deals ( at least in my area). I wish you the best.

Originally posted by @Gwendolyn Davis :

Hello everyone,

I tried my first investment. Here's the plan:

Buy  a house through short sale. (put in an offer)

Used the funds I have to repair the property. (little work needed, had 7 contractors to quote repair cost)

Get a FHA with down payment assistant to purchase the home. (already approved)

Live in the house for the minimum amount of time then sale it.

Here's the down fall"

My Realtor says the house is past redemption.

The bank would rather let the house go into foreclosure to get what is owed which is 78,000.

At the time I put in my offer after running some comps, the house was valued at 45,000. ARV

However since then after running some comps today the house could be valued at 77,340. ARV.

What do you all think

Don't get discouraged just keep on making offers and eventually you will close on your first deal. I count each offer/transaction as a learning experience. The question to ask is, "did you learn something in this transaction"? I have learned that banks can do whatever they want to. About 6 months ago, I had my heart set on a short sale property and the bank took forever then accepted a cash offer from someone else. Stay encouraged. 

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