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Updated about 2 years ago on . Most recent reply
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Subject to existing Mortage deal
I am new to investing and am working on a subject to deal. What is common to offer the seller? Seller is in a hard situation and wants out. The home needs a tone of work. Also a hick up I am having is getting his real estate agent on board with a subject to. Any ideas on where I should start on offering the seller $$$. And how much should I offer the real estate agent?
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Quote from @Eliott Elias:
You offer the remaining balance the seller has. What you want to negotiate is down payment and balloon.
Do not follow this advice. You do not offer the remaining balance the seller has.
Offer what the property is worth. You say it needs a ton of work. So you need to take the After Repair Value (ARV), subtract out the cost of the repairs, then subtract the agent commissions and closing costs, and that will give you the max amount that you should be paying for this deal.