All Forum Posts by: Simon W.

@Tadd Hale , it really depends. I would review the tenant's lease and if you agree to it.

I have to agree with Wayne Brooks. If he can't sell it at $72K, that won't be the market value.

But say $72K is the MV $60K isn't a wholesale deal.

Say no repairs are needed

Do a minimum 80% of the $72K brings you to $57,600 minus your profits ($5000) = What you should get it at is $52,600

I am going to meet up with the listing agent to write up the Purchase of Sales agreement. This will be a rental property and I want to know what contingency I should tell the agent to put in.

I want to have the option of home inspection and if I were to back out I can use that. Is there some kind of wording I need?

I will have 10 or 15 days inspection period, review of the new tenant's lease agreement, and financing contingency.

I don't want to forget anything.

Thanks.
Simon

Erica Clark, then you're good to go

+1 for Anson Young for the formula.

Even at 65% you are in the ballpark price. It seems to be a solid deal

Hi Erica,

First thing first, Zillow isn't the way to go for their estimates. You shouldn't do comps that are a year difference, I believe most investors here do comps on the most recently sold in the past 90 days.

If the numbers work out as you stated, hard money lenders are a good source to know if your deal is solid. Most of them were in the same business and if you have 2 or more HM lenders denying your plan, chances are the deal isn't good and you shouldn't force yourself into it.

For the $55K repair, did you get a GC to give you that estimate?

typically the lower the price the more unwanted location and run down properties.

I suggest asking your agents about REO, Foreclosure, & Short-Sales

You're kinda in a dilemma. I think you know what you want for advice. Just more of a reassurance.

You can make the asking price super high that way if they still want to continue with the purchase you will make a hefty profit upfront or option it so you get a higher rent income and if they don't end up buying while rent to own, they keep the property nice so no need to worry there.

Just a quick thought.

Steven Maduro, if you don't feel like like you should charge extra then you should get another security deposit if any damages done by the other roommates. Also definitely get a background check. cuz hey you never know.

Michael, I am bit confused with your statement

Example

$35,000 is what I will pay and he will pay for the cost that might be $3000. I save myself $3000.

If I ask him to reduce the price to $32,000 sure I can pay the cost.

If it's $35,000 and I need to pay for the cost, that's a total of $38,000 that I am paying.

He gave me the price and of course I don't want him to have the last offer. I want it to be in terms that I can work with.

Scott, I am only doing so because of the seller's counteroffer.