All Forum Posts by: Kurt Michaelson

The numbers on your end sound like just tossing stuff out there, see what sticks. The numbers on his end sound like either someone that doesn't need to sell unless he gets a dream price, or a crazy person that doesn't know the market value of anything.

How much work does the exterior need? If ARV is 585 and it needs 30k in repairs on the outside, he's probably pretty close at his 500 number. Did you explain to him how you arrived at your number?

Based on what you wrote, unless the outside needs $100k worth of work, I probably would have laughed at the $405 number myself. That's almost a 50% spread to ARV, which sounds crazy based on needing some exterior work.

JD, I probably should have shown him the estimated repair figures to arrive at an offering price, but you're right, the lowball offer didn't help and I should have started at $440K. The repair estimate is between $30K-$40K too.

Lesson learned. Thank you sir.

1 Vote

Originally posted by @Paul Choi:

Hasn't sold for 3 years? wow..

What does the CMA report say it is worth as-is?

Have multiple deals in the pipeline so you have an easier walking away from a deal that doesn't make sense. Better to not buy a property where the numbers don't work, than buy it and try to force it to work.

Thanks Paul. I agree and if it's not going to work by the numbers, it's not going to work and I won't force it either.

0 Votes

Originally posted by @Christine Kankowski:

I tried to pull up the photos, but I get an error code. I"m from the area, so I would be happy to take a look and give you my opinion based on the location/ photos.

Thanks Christine, I'd be happy to send the link to your email address. Can we connect here on BP?

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Well, I made an offer on this one and the owner initially wants $547K, and said he was willing to come down in price for a cash offer. I offered $405K and he laughed at me. He later said he'd take nothing less than $500K for it and I offered $450K and he hesitated to say yes and declined. He believes he can get $547K for this, but it hasn't sold for that in the last 3 years that he tried.

The interior looks good, it's the exterior that needs some work, to bring it up to market value. ARV would be $585K - $600K.

I used the BiggerPockets calculator for this one too, which was a big help for me in figuring out an MAO and how much to negotiate.

Google Photos of the house - https://photos.app.goo.gl/HBtdJEofanQiK5Ms7

0 Votes

All Forum Posts by: Kurt Michaelson

Kurt Michaelson has started 10 posts and replied 144 times.

Post: I made an offer of $405K and he laughed at me

Post: I made an offer of $405K and he laughed at me

Post: I made an offer of $405K and he laughed at me

Post: I made an offer of $405K and he laughed at me