ARV = $110,000 * 70% = $77,000
- Repair Est: $30,000 = $47,000
- Wholesale Fee: $12,000 = $35,000
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Mortgage: $21,000
+ Back taxes: $7,500 = $28,500
+ Cash to seller: $4,000 = $32,500
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Problem: the house hasn't been probated yet. Seller refuses to come out of pocket a single dime. The probate will cost ~ $2,000 brings my buy price to $34,500.
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I'm willing to front the $2k if I can make it back plus another $10,000. But I'd need to write in some protection. I realize that once I pay the legal fees, I'm effectively ouut that money.
*There are 2 other heirs that supposedly will sign off on anything needed to shed this house. It's in bad shape.
What if I write him a check to cover legal fees, call it EMD, get a copy of check to title company, and file an affidavit of equitable interest and require the EMD back if he fails to go through with the sale after probate? I would never normally give an EMD to a seller, but in this case in trying to make something happen.
I realize some of you will say walk from the deal but I'm just getting started with 2 deals currently in escrow, need all I can get.
Hot market and I'm very confident I could move the property to a buyer for $47,000 and can come down if needed.
Advice appreciated.
Mike
