Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Updated almost 9 years ago on . Most recent reply
Can I make this a deal in any way?
3/2.5 1664sqft, the owner total owed $220,305, and he is 15 payments behind, which is about $28,456 to bring it back to current. ARV about 260k-270k. Movitated seller.
Can I turn this into a deal, any kind.
Any idea appreciated.
Most Popular Reply

Originally posted by @John Chen:
I'm thinking if I can purchased at $230,000 sell at 270k, I make 40k less cost.. Does this make sense?
I think you're missing a lot of numbers though:
1 - How much of the 15 back payments is interest, and how much is principal? This is important because the principal part will be subtracted from the $220k owed, but the interest will be added to it...and I would estimate that about $20k of the $28k back owed is interest.
2 - see #1...so, the real total owed at this point would be more like $240k...assuming there is no rehab to be done.
3 - Now, you need to cover this, and closing costs (no matter who pays them, they can't come out of the $240k owed (see #2). Assuming about 10% for C.C., including 6% for REA commissions, you are looking at about another $26-27k added to the offer.
4 - Total minimum offer needed, to cover back owed, back payments, and C.C., would need to be about $267k.
So, this is a non starter...and no deal.