All Forum Posts by: Tyheem Joiner

Ok thank you Anthony. Regardless of percentage, I was trying understand the logic before placing bids. 

Would bank approval they be based on market value or debt owed. 

Hello bigger pockets patrons, 

I am new to real estate development and looking to possibly make a cash offer on a short sale. I am trying to wrap my head around the whole short sales process.

I have heard some conflicting information regarding bank approval process. My understanding is that no matter what number a seller has price and approved for a property, the Lein holder (bank loan agent) will determine what they will accept based on BPO and other factors. Some have said sales price would be worth 10-20% on market value, other have said that discount would be for the debt owed.

My question / confusion is 

1. Would the bank accepted price be based on market value of house or debt remaining on house?

For example if the house market value is 400k, but 125k debt left in loan. 

Will they consider 100k price since it is a 20% discount on the debt owed, require 120k offer or higher, or require price of 320k (20% off market value)?

2. For properties where there may be uncooperative tenants, damage to property and therefore little to no access to house for bank appraisal by BPO, would the bank consider damage and potential issues removing tenants in lowering price.

Thank you in advance for any assistance you all are able to provide me.

Ok thank you for the responses. It may be a large undertaking, I am trying to determine the cost vs benefit. the property is currently legally a 2 family with walk out basement. Accessible unit and small sprinkler seems to be within reasonable budget. I am an architect and my partner and I intend on doing a majority of the sweat equity construction work. Would the legal fees for conversion be based on cost of property or other percentage method? Or is it a flat fee based on the lawyer chosen

It is located in Bushwick, Brooklyn.

Hello, I am considering buying a 3 family townhouse structure with relatively small units in NYC to renovate. I considering whether after renovating I should consider renting or sales as condos. I would prefer sales of units as it would be a way to attain money out into property. Does anyone have any thoughts or experience with this? Thanks in advance.