Short Sale - What should we offer?

Question

Hi,

My REI partner and I are considering making an offer on the house next door to my current residence.  ARV would be about $145K.  It is about to go on Short Sale and has foundation issues.  The owner bought the house in 2006 and I believe started having trouble about a year ago.  65% of market value would be $87K.  We were thinking of offering $80K to start.  We are located in Round Rock, TX (Austin, TX area).  My question is do you think we stand a chance of getting the property on short sale with this offer or where would you start if it were you?

Thanks,

Vanessa

Vanessa Ramirez · Answer

We currently have no stake in the property, but we are definitely interested.  I actually would love to hold on to it and rent it or live in it and rent my current residence, but I think we most likely will need to flip it.  There are renters in the house now (for the past year), so I'm not sure what the owners have been doing with those rent checks.

-Vanessa

Dan N. · Answer

Maybe we should partner!

Mike Walker · Answer

I would put in the offer and let the bank look at your numbers. You never know the level of motivation, nor the criteria, prompting their decisions. Follow the formula, as you mentioned. They might get back to you tomorrow or three months from now, if they have interest in shorting the sale vs. a foreclosure.

Bill Gulley · Answer

LOL!!!!

Your check thing posted 2 days ago and you're still on my mind in Round Rock, LOL.

Dan, that might be a great idea, seems she has the numbers about where they need to be!  I won't razz you anymore, good luck and meet the competition and join them. :)

Bill Gulley · Answer

Yes, sounds fine, show costs and justify, I think you're on to it! BTW, your partner isn't holding checks from a tenant is he?  Round Rock can't be that big! LOL :)

Short Sale - What should we offer?

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