Owner owes on property

3 Replies

So I have a owner who wants to sell his house and he says he wants $105k but he owes $70k his house maybe worth around $200k-$250k (not really sure) but its a complete disaster. Not to criticize the house but it looks like the junk yard literally When i passed by it I didn’t even know it was a house because of all the trash and junk piled around it honestly I don’t even know what the estimated repair cost would be so im not sure what to offer him can somebody help me out how does this affect the mao formula

Hi @Jose Alexander ,

This seems like a decent deal. If the house is worth $200k and he wants $105k, that's $95k of Gross equity for you. You'll have to do trash removal ($15,000) and then renovate the house, but you should still profit nicely on this.

Am I missing something?

@Nathan Platter I have to speak to the seller again but going back what he told me yesterday, he said he wanted $105k in his pocket not sure if hes aware that if i offer him that he would have to pay that $70k he owes out of that. Based off the convo we had yesterday, i think he wants me to cover that $70k and make sure he has $105k in his pocket meaning iwould have to offer him $175k but when i tell you the Condition of the house is so bad im not sure at all what the inside looks like theres no way to get in the house because of the junk surrounding it but im definitely sure the inside is just as f*ckd up as the outside so idk if that brings the as is value down or not

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