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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: A penny will do... Posted by Ward-CA- on January 23, 2002 at 8:05 AM In Reply to: Another tack on this deal... posted by Alfred, Trainee on January 23, 2002 at 4:28 AM : Hi Ward. Nice talking to you yesterday. I'm going to call the bene on the deal that you & I talked about this morning and make my offer. I'll let you know what happens. : If he says yes, we'll go into full research mode on it, etc. BUT... I looked at this from another perspective other than the one we talked about and wonder what you think about this. If the FMV turns out to truly be 220K... the 1st's opening bid at their TTEE sale will wind up being about 140-145K (because there is a remaining balance of 125K on their note with a 10K default amount already)... the sale amount might be bid up to 176K by investors because that is 80% of the FMV... if we just sat back and let that happen we'd make 31K pro tanto (26K profit) without all the time and hassle of taking possesion of the house, rehabbing and selling it. The contingency plan if no one bids at the TTEE sale? We could bid $1.00 more and get the house for 145,001.00. The result? 145K plus our 5K purchase would give us a 220K house for 150K (68% of FMV, 70K in equity). We could then quick flip it as a foreclosure fixer upper and make a nice little chunk of money. What do you think of this plan as opposed to the first plan? Thanks in advance! ============= Alfred, First of all, if no one is bidding against you why bid a dollar more? A penny will do! How many times do I have to tell you guys not to waste your money? In a more serious vein, my experience with trying to flip a raw fixer is that the potential buyers all want an exaggerated discount. So I've given up on that angle and just fix 'em and sell 'em at retail. So if you run into this same rigamarole be prepared to finish out the deal yourself (time & money). Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward. Nice talking to you yesterday. I'm going to call the bene on the deal that you & I talked about this morning and make my offer. I'll let you know what happens. : : If he says yes, we'll go into full research mode on it, etc. BUT... I looked at this from another perspective other than the one we talked about and wonder what you think about this. If the FMV turns out to truly be 220K... the 1st's opening bid at their TTEE sale will wind up being about 140-145K (because there is a remaining balance of 125K on their note with a 10K default amount already)... the sale amount might be bid up to 176K by investors because that is 80% of the FMV... if we just sat back and let that happen we'd make 31K pro tanto (26K profit) without all the time and hassle of taking possesion of the house, rehabbing and selling it. The contingency plan if no one bids at the TTEE sale? We could bid $1.00 more and get the house for 145,001.00. The result? 145K plus our 5K purchase would give us a 220K house for 150K (68% of FMV, 70K in equity). We could then quick flip it as a foreclosure fixer upper and make a nice little chunk of money. What do you think of this plan as opposed to the first plan? Thanks in advance! : ============= : Alfred, : First of all, if no one is bidding against you why bid a dollar more? A penny will do! How many times do I have to tell you guys not to waste your money? : In a more serious vein, my experience with trying to flip a raw fixer is that the potential buyers all want an exaggerated discount. So I've given up on that angle and just fix 'em and sell 'em at retail. So if you run into this same rigamarole be prepared to finish out the deal yourself (time & money). Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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