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Updated about 1 year ago on . Most recent reply

User Stats

36
Posts
8
Votes
Jack Phillips
  • Wholesaler
  • North Jersey
8
Votes |
36
Posts

Need help with mortgages, liens, etc

Jack Phillips
  • Wholesaler
  • North Jersey
Posted

So I have a hypothetical situation:

Lets say a properties ARV is $550k,

Repairs are $75k,

And Wholesale Fee is $10k.

Using the mao formula:

$550,000*80%-Repairs-Wholesale Fee = MAO of $355k

When I am making my offer price to the homeowner, how do I include any liens, mortgages, and/or money owed? Do I subtract the the offer price ($355k) by the total amount of money they owe? Or is that not my job and I offer the full $335k to the homeowner, find cash buyer to buy the property, and the cash buyer and title company deal with all that.

Please help, thank you

Most Popular Reply

User Stats

9,861
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5,555
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Eliott Elias
  • Investor
  • Austin, TX
5,555
Votes |
9,861
Posts
Eliott Elias
  • Investor
  • Austin, TX
Replied

The seller should be disclosing any liens from the property. In any case, whatever the seller nets minus liens is their business, not yours.

On a sidenote, I would not buy at 80% in todays market.

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