Auction Deal Scenario

[Lance Gorton]

Here are the numbers on a potential Trustee's Sale deal. Is there enough profit here and have I overlooked something big? Thanks for any feedback.

ARV: $375,000  (Broker says more but this is a solid, well comped number. He said more

               like 425,000 but that was based on avg per sf sales, incl smaller homes.)

Max bid: $281,101 (the most I would bid. Opening bid 275,000)

Rehab: $30,000  (I know - w/o interior inspection it is a guess. The home is very nice

               outside, great neighborhood and looks good through the windows). Home 12

               years old. HOAs (70/mo). Was one of the model homes...

Selling cost: 5% Broker and 3% fees = $30,000

Holding / Arrears: $11,000 (I have verified HOA, cnty Taxes. Includes insur., utilities)

Funding: 10% or equity partner 50/50. My $ investor is open... Let's say 10%, no pts.,

               and 8 month turn around, 322,101 loan. That is $22,613 to investor @ COE.

NET TO ME: $286 (from 93,900!!!)

Variables: Home occupied (thus 8 mos to evict etc.)

                General is in-law. He will cut his fees to help (5,000). Yes, he's good.

FSBO - saves 2% if co-op to Realtor, saves 7,500

                $ investor - our 1st "deal" - don't want him turned off!!!

Be kind, Lance