Short Sale Deal! What to offer!

[Robert Knudsen]

Hello Everybody, I found a short sale, that already had a BPO of $90,000. It needs carpet and paint, so minor repairs and has all appliances minus washer and dryer. ARV is $95,000. So $95,000-10% for repairs equals $85,500. Then my three prices are $85,500 * 65%,75%, and 85% so $55,250 - $63,750 - $72,250. Would I be wrong to offer $58,000 and maybe close around $65,000?

[Jon Holdman]

Rule of thumb is 70% of ARV, less repairs. 70% of $95K is $66.5K. Lets $10K for repairs is $56.5K. If you're using hard money to fund the deal, hold for six months, stick to all these numbers you'll turn a profit of around $15K.

The question is whether or not the lender will accept an offer of $56,500 when the BPO is $90,000. Seems unlikely.