All Forum Posts by: Mike Flora

The last thing I want is to not close a deal with my seller and I also don't want any more trouble if I have to break contract at the last minute. I would rather loose a couple hundred on my earnest deposit rather than the seller coming after me for more. I'm sure at some point in my career I will be faced with breaking a contract because I can't find an all cash buyer. Just trying to be safe with that statement in my contract.

I have written a disclosure in my contract that states "if buyer, myself, is unable to fund the loan on or before close of escrow, seller is only entitled to earnest money deposit." THOUGHTS???? Since I'm looking for an all cash buyer quickly I'm sure one day I will run into not finding one for one of my properties and don't want any risk if it comes to funds breaking the contract. Yet I don't want to scare off a seller with this statement. DOES THAT STATEMENT WRITTEN IN MY CONTRACT SAVE ME FROM FURTHER ACTION ON A DISGRUNTLED SELLER ONCE CONTEACT IS BROKEN???

Sorry, I meant ARV......if my seller has the equity already below my high purchase price it's such a huge difference and repairs will not cost that much for just a 5-10k profit. If you follow the 70% ARV equation you might not get the contract because you asked for too much off the deal. Not sure if there is another way to look at it on higher market value homes. Just don't want to miss something I'm overlooking and raise my ARV myself on a high priced home and lose my deal to an all cash buyer.

Sorry, I meant ARV......if my seller has the equity already below my high purchase price it's such a huge difference and repairs will not cost that much for just a 5-10k profit. If you follow the 70% ARV equation you might not get the contract because you asked for too much off the deal. Not sure if there is another way to look at it on higher market value homes.

does the 70% AVR pretty much stay the same with all market value prices and same SQFT?

Example: 100K market value home 2000sqft and 300K market value 2000sqft. Numbers are way different!!!! Seems to much to cut on the higher priced homes for 70% equation. I live in Cali and prices are higher. Wondering if I'm missing something, or is it always between 70-80% minus repairs????