All Forum Posts by: Bob Gilmoar
Bob Gilmoar has started 1 posts and replied 2 times.
Post: Profits from pre foreclosures
- VA
- Posts 2
- Votes 0
Originally posted by @Rick Pozos:
If the payoff is 60k, the owners are going to want something. I would never, ever, ever NOT give the owner a part of their equity. In this case, I would think that the owner would want about 100k in their pocket. If they dont, I would really think that the person selling the property is not really the person who owns the house. Maybe you just have not asked them what they want out of the deal. OR maybe they think they are getting the 300k.
Thanks for the response. You mean an additional 100k on top of the 94k of the total pay out, correct? So paying them 194k for the house, with roughly 106k in profits between me and the buyer, correct? If anything, I was going to offer them 20k for moving expenses added on top of the 94k. That would leave us with 185k in profits between me and the buyer. My fee would be 80k and his profit would be 105k.
Is that not correct?
Post: Profits from pre foreclosures
- VA
- Posts 2
- Votes 0
Let's say I am wholesaling a pre foreclosed property. The property's ARV is $300,000 with 80% equity, meaning they have paid $240,000.
Now I am assuming they have missed 5 months of payments. Is this math right? These numbers are just estimates and assuming no other fees (HOA and etc) are attached.
$60,000 pay off
$25,000 rehab
$06,080 back payments @ $1,216 a month
$01,216 for that month's rent
$01,000 closing fee (random)
$01,000 holding fee (don't really understand this)
Total~
$94,296
Would be paid to the owner
Leaving $205,704 for as potential profits for me and the investor. That doesn't seem right....
Am I missing something here? Is the owner (seller) of the home supposed to be getting some of this money? Moving costs and etc?
I'm just trying to wrap my head around this.