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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Cash out of pocket = $49K (commission is deferred). Posted by Ward-CA- on May 04, 2002 at 7:00 AM In Reply to: Bankroll posted by Royce on May 03, 2002 at 9:55 PM : Ward; : I'm just starting out in this business and have saved a small amount of cash. I'm going to my first trustee sale next week to bid on a condo whose FMV is $75,000. Opening bid will be $22,000. How much cash do you think I'll need to be the high bidder. There are no other liens on the property. : Royce =•=•=•=•=•=•=•=•=•=•= Royce, If we assume you want to make a minimum profit of $20,000 and that your resale price is $75,000 and assuming about $5,000 in miscellaneous interior repairs and upgrades and that you’ll be paying about a 6% real estate commission and about 2% transaction expenses, and taking you at your word that there are no other liens, including property taxes and HOA fees—I’d say don’t pay more than $44,000 at the foreclosure auction. If there are more expenses than what you mentioned in your post then subtract them from the $44K you'd bid up to. Good luck. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward; : : I'm just starting out in this business and have saved a small amount of cash. I'm going to my first trustee sale next week to bid on a condo whose FMV is $75,000. Opening bid will be $22,000. How much cash do you think I'll need to be the high bidder. There are no other liens on the property. : : Royce : =•=•=•=•=•=•=•=•=•=•= : Royce, : If we assume you want to make a minimum profit of $20,000 and that your resale price is $75,000 and assuming about $5,000 in miscellaneous interior repairs and upgrades and that you’ll be paying about a 6% real estate commission and about 2% transaction expenses, and taking you at your word that there are no other liens, including property taxes and HOA fees—I’d say don’t pay more than $44,000 at the foreclosure auction. : If there are more expenses than what you mentioned in your post then subtract them from the $44K you'd bid up to. : : Good luck. 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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