All Forum Posts by: Matthew Haussmann

Wayne,

Thanks for the quick response. Can you define "funky little exceptions"? I want to make sure I've considered everything before I offer. Also, given the numbers above, do you think $50,000 is a decent start or would you go lower?

Thanks again

Hello Forums,

I am looking for some input or advice. I am looking at a deal in Pennsylvania. The property is REO, listing at $74,500. The ARV is $110,000 and the house needs a max $22,000 in repairs. My first offer will be $50,000 or less. By the numbers, it should work. My problem is the bank has it listed as a cash only deal. The only reasons for a cash only deal that I'm aware of are if the price is too low for a mortgage (under $25,000 or so around here), or if the damage to the property is so excesive that the bank won't secure a mortgage on the property. I've been in the property and talked to the agent. The issues consist of a leaky roof, need of a bathroom remodel (because of the leaky roof) and the need for a water meter. Beyond that it is all cosmetic. Even factoring maximum cost for the repairs ($10,000 for the roof and $3,000 for the bath, and $5,000 for the water meter, all very high end estimates) I cannot see why the bank would list this as cash only. I have been in similar houses at similar price points with much more damage that were listed as conventional financing. The issue is not the cash purchase, I was planning to use cash anyway. My issue is my fear that I am missing something. Can anyone see anything I might have overlooked?

Thank you for your help.

I am looking at a property being sold through a wholesaler. Technology being what it is, I was able to find the owner of the house and the actual contract that was signed between the owner and the wholesaler. Here is where I need some feedback. This contract is for $40,000. The wholesaler is marking it up to $65,000 (roughly a 62% markup). Is this normal? Ethical? Anywhere near decent? Any input would be appreciated.

You people are a wealth of knowledge, thank you for the responses.

@Wayne- I stated that a second bank bought the property because there is a sales transaction at that price. Could that be something else?

@Marie- How is what is owed not relevant to my offer? If I offer less then what is owed will I not be rejected out of hand?

Thanks again everyone, this is very helpful.

@Joe- I've had both my contractor and specialists (electricians, etc.) out to give me estimates. I've used those numbers as a start and added in the smaller details with a 10% cushion to be safe.

@Matt- Would you mind explaining why it wouldn't matter what is owed on the house? I'm slightly confused by that statement.

Thanks Joe, I appreciate the information. So, the second bank is now just trying to make whatever they can off of the property? I am trying to calculate how much to bid. The house needs an estimated $35,000 of work before it can be rented.

I've been trying to find out who takes the loss on a foreclosure. Every answer I've found seems suspect. If anyone could help I would appreciate it. Here's the situation: I found a property that went to foreclosure with $131,000 owed on the loan. The property went to auction and did not sell. Another bank then bought the property for $72,000 and listed it for $131,000. The price has since dropped to $119,100. My question is this: If the second bank bought the property for $72,000, who took the $59,000 loss?

Appreciate the help.