Getting Sub2 From Preforeclosure (First Deal)
It looks like I may have my first deal and I'd like to get some other's opinions.
I received a call last night from a lady from one of my postcards. She has a house (I think it may actually be a condo) going that will be sold on Sept 2 at the steps.
She's packed and ready to move, all she's looking for is Uhaul money. I assumed $500 should do it, or do you guys normally offer more than this?
Built in 1996
Tax Assesor's Value: $116K
Recent Sales: $120-125K
First: $93K
Second: $11K
Total Arrears: $3128
Closing Costs: ~$1500
I'd end up being into it about $5K, which I should easily be able to get back on an owner finance as a down payment.
Does anyone see anything with this that I may be missing?
Granted I know it's not spectacular, but would you guys consider this a good viable deal?
Thanks,
Scott
ScottD,
If...INDEED YOU CAN MAKE $5K..
I would do it!!..
..GO for it my FellowREI
....and CONGRATULATIONS
....as always,
GoodInvesting, Rocky
It looks good to me!
Just make sure you include cleaning/fixup costs. The prettier and cleaner the condo, the easier it will sell.
Also, you'll have to sell it yourself, if you use a RE Agent, that will take away all your profit.
Finally include holding costs (mortgage payments, utilities, etc.) in case you don't get a buyer the first month it's on the market.
Great start for your first deal.
GOOD LUCK!
Mrs. Meltzer[ Edited by MrsMeltzer on Date 08/19/2003 ]
Why would you pay closing costs?
If you go to your bank, ask anyone who is a notary if they will do you the favor and take the lady there to sign the paperwork for closing. Cost: $ 0.00
Or get your notary some candy or flowers, if it is a lady. If it is a guy, just think about something!
That way you save $ 1500.00!
At my bank one of the girls loves to do my closings!
Ladybug