Beginner Question
I have found a property that is in REO and it appears that the previous owners still owed about $25,000. A buildable lot in this area goes for about $100,000. How do I verify the amount in arears and how do I make a proposel to the bank for say $50,000? I think this would be an excellent deal. Also if this house were to be listed on the market, I believe that it would go for at least $150,000.
Thanks in advance for any help.
If a new home on that lot would sell for $150K and you want to sell the lot to local builders, $50K seems too high an offer. On the other hand, $50K would be feasible if you want to buy the lot and then sell the lot to an end user for $100K without having a house built.
how much are plain lots going for in your area? that will tell you a lot
if it is owned by the financial instituion, it doesn't really matter what the previous owners owed on the mortgage. You will have to deal directly with the financial instituion that owns the lot/ building/ etc. They will probably do a market analysis and then sell it to you a little below retail...
Good luck
As a builder I would not pay you over $24,000.00 for the lot. This is assuming I can sell the house for $150,000.00,with a cost to build house for $96,000.00+$24,000.00=$120,000.00 total cost which would leave the builder with a 20% gross profit.
Ok this this lot already has a house on it. The land prices are crazy here. A quater acre that is buildable is $100,000.
I guess my question really is: When dealing with the financial institutions, how close do you need to be to market if what is owed is considerably less?