First Deal Question
I am looking at doing my first deal. I found an REO property that is listed at $169,900 and needs about $10k in repairs. Comps in the area show an ARV of $189,900. When I looked for financing all of the hard money lenders want to only loan up to 70% of ARV. (~ $139,900 in this case) I want to finance the purchase and the repair costs so that puts my target purchase price at $129,900. Does it seem possible that the bank will come down this much from the listed price? It is clear that this is a wholesale property by the condition of the house. I know they can’t possibly get $169,900, but it seems like they could get it sold for more than $129,900. I figured I would go ahead and offer 129,900. All they can do is say no, but does anyone have any suggestions/advice/etc for a first timer on how I could get this deal done and still turn a decent profit?
Thanks.
I was shooting for $129,900. My question was do you think the bank would come down that much.
Unfortunately, it does not matter now. Someone beat me to the punch and got a contract.
How much did they get it under contract for?
This might tell you how far the bank will bend, for next time.
The agent would not tell me for some reason.
A reputation for Integrity and Honesty is harder to get than money... Listen to JL and think twice before compromising yours.... [ Edited by jimandlacy on Date 09/18/2005 ]
Hi fellow SoCal investor! Although I have not done any precon deals, I have looked into it elsewhere as the opportunities here in SoCal are thought to be gone. But who knows? I am very curious where you are finding new homes here in the $200-$300k dollar range? High Dessert ?Also, just one more thought. The market here is slowing down fast. I would be prepared to hold for at least 6 mos. Good luck!