How Do I Deal With This One?
I'm not at all experienced with short sales but I found one. Tell me if I should even try anything here. The house is 4/2 in a good area, older brick home. Comps show it's worth about 145k, they owe 145k on it, are 6 months behind, the sale is in October. The kicker is this, the house has been sinking for 2 1/2 years. The repair estimate to stop the sinking is 33k. Due to the sinking of the house the trusses (sp) have been pulled and need repair, 12k. This is what I was told by the homeowner. They have pretty much given up. Is there a way to profit from this given the time before the sale and the repairs needed? Would the bank potientially take a 70-80k loss? Let me know what you pro's think. The house is in Utah, Davis county area, any interested utah short sale investors? Andy
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Run, Don't walk! Unless you are a contractor and know you can solve this problem, stay away!
LOL. Sounds like good advise.
Andy
I'm a contractor If someone built it it can be fixed. This one sounds like a bulldoser repair. The banks thinking maybe lot value , buyer rips the house. It also sounds like it could be on the market for years to come. In any case run sounds good.
I would certainly consider this an extraordinary opportunity. If you have any type of network of buyers... I would jump on it. A cash ready builder would be good, or a non profit group like Habitat for Humanity.
Davis County Utah, ey....I'm gonna find your house and BUY IT Right out from under you! I'm gonna Be RICH!
....just kidding Andy,
I dont' know if I told you this formula before. LeGrand teaches this. It is:
(Price X 70%) - Expenses = Max Allowable Offer
So for this deal.....
($145,000 X .70 ) - $45,000 = $56,500 (assuming there are no other repairs, expenses, holding costs, judgments, 2nds, etc)
I'd probably offer the bank $20,000 and let them know that you're doing them a favor and be able to back it up with "Facts" (...that is Facts that support your argeument).
If you decide to NOT go after it, give me a call. I know a guy in SL that you could birddog it to. He does almost exclusivly short sales.
Keep me posted and let me know what you decide.
C ya
If you are spending all of ur time fixing one you will not have time to find more short sales.
I keep it simple and do the best ones only.
I may do only 3 a year but I make no less than 40k per.
I could do some others and make 20k with more work and WHY??????
40k x 3 = 120k a year
20k x 3 = 60k a year
And I bet I did a couple 20k ers would not have time for a 60k er.
SKI