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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: No argument here. Posted by Jim V on February 05, 2002 at 11:35 AM In Reply to: You're making my decision very easy... posted by Dave(CA) on February 04, 2002 at 8:27 PM : ... if 85% is considered rational I’ll pass on trustee sales. : I’ve done several deals Jim (non trustee sale) and I consider a 15% margin dangerous. You can eat up 10% on back end closing costs and commissions alone. The chances of a foreclosure property you’ve never seen not requiring any work is virtually zero. The cost of the purchase money, or lost opportunity, plus taxes and insurance has to be about 1% per month. And, perhaps most important, there is always a 5%-10% margin of error in anybody’s estimate of FMV. And these are the known costs, there’s always unexpected costs. : It’ll be interesting to see if other trustee sale experts think as you do. : - Dave Dave, I'm not advocating higher bids, just pointing out that some bidders will go that high. 80% and under deals do happen, you just have to work harder. With an increase in foreclosure volume, bidding levels will drop to a more acceptable level. That isn't a prediction that volume will increase, just a reasonable expectation. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : ... if 85% is considered rational I’ll pass on trustee sales. : : I’ve done several deals Jim (non trustee sale) and I consider a 15% margin dangerous. You can eat up 10% on back end closing costs and commissions alone. The chances of a foreclosure property you’ve never seen not requiring any work is virtually zero. The cost of the purchase money, or lost opportunity, plus taxes and insurance has to be about 1% per month. And, perhaps most important, there is always a 5%-10% margin of error in anybody’s estimate of FMV. And these are the known costs, there’s always unexpected costs. : : It’ll be interesting to see if other trustee sale experts think as you do. : : - Dave : Dave, : I'm not advocating higher bids, just pointing out that some bidders will go that high. 80% and under deals do happen, you just have to work harder. With an increase in foreclosure volume, bidding levels will drop to a more acceptable level. That isn't a prediction that volume will increase, just a reasonable expectation. 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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