All Forum Posts by: Bruce P.

Yes, thank you @Minna Reid 

 Thank you @Kenneth Garrett @Anthony Dooley @Minna Reid. A lot of what you say makes sense.  I also found this thread https://www.biggerpockets.com/forums/103/topics/204113-pricing-the-short-sale-offer by Denise that made a lot of sense, that's why I was asking about NPV.  You guys have definitely helped shape the way I'm going to do my offer, so thank you!  And any further advice from you or anyone else is appreciated!

Hi,

So I've been doing a bit of reading on short sales. I'm interested in making an offer.

1) I've seen people use a NPV (net present value) calculation - I understand how to do the calculation, but how do you determine the discount rate for your area (I'd be interested in the Los Angeles, CA area)? Do you just average say the annual S&P 500 returns for the past 5 years? 

2) Also, I've seen a rule of thumb that says take 15-20% off the list price of the short sale and that's your offer.

3) Finally does anyone have any good book picks for reading up on short sales?

Thank you for asking this question @Juan Pablo Murillo , it really helped me and thank you @Todd Dexheimer for that article and @Michael Swan for the implied "mindset" and "values" advice you gave.

Hi @Trey Knight , just wanted to thank you for asking a great question. So much great wisdom here from everyone! 

Thank you @Nick G. :)

Hi @Nick G. , I just stumbled on this thread - it sounds like your advice still holds today in Feb 2019?  It definitely seems hard to find a property meeting the 1% rule, more like a 0.5% rule.

Great question @Zubair Ahsan as I was just researching different areas and was figuring out how to ensure my numbers were accurate and cut down the amount of time I'm doing research. And thanks for sharing the results of your experiment @Matthew John, it's a great point about experimenting and testing!

Thank you for sharing @Collin Schwartz, this is so inspiring as I'm starting out looking for properties.

Awesome, congrats and thanks for sharing your journey!