All Forum Posts by: Jay M.

3 years?? That'll leave a mark!!

Greg, it's an old multi-family. Even if it was a SFH at $180k you would be doing all the work for no money for yourself for managing the gut / reno. I still don't think you could do it for $65k either.

Hello All,  I have a question regarding bank fantasy pricing vs. buyers totally overpaying. 

This is the scenario. Bank bought back foreclosure, loan amount was for $208k a couple years ago. Buyer realized he overpaid by approximate value of two brand new trucks....and walked without doing a stitch of work. Bank is pricing it at approx. $245k. Market ARV is realistically $270k. It needs about $80k worth of work and that doesn't include any margin or profit. Realistic buying price is about $136k vs. bank asking price of $245k...and that will give you 20% profit if you're lucky. (I'm in construction, I know pricing)...

This has been on the market for 6 months.  My question is this..........  What will give first in this situation.  Will the bank realistically price it eventually or will some uninformed dreamer cough up the money again and lose $80k?

For my first response on BP I think I'll pile on.......7k a month is a 9-5 job....  Surely to acquire that 7k you don't work full time for it.   Brandon used just this example in his book regarding the power of compound interest.  By you NOT working on a full time job you're scooping off the interest and not letting it build up.  

I understand you're taking it all and reinvesting it. Smart move if it was a part time gig.  Since you don't have a gig everything you're building up (properties, assets etc.) is in lieu of that gig (see above - typical 9-5).  If you want to build up your "empire" quicker - work, contribute to your household / marriage and your "side gig" will build up far faster and your marriage just may last.....

I'm guessing you don't have the wherewithal to do a typical 9-5 W-2 job and if that's the case just take that 7k a month and contribute it ALL to the house.  Then if there is any money left over from your combined pile invest that.  With that list of doors you have it will increase without you touching it.