Thursday, February 10, 2005

House 4 Out Of Play For Me... But You...?

Got a counter for House 4 today. I've decided to pass on this one, so here's the details:

Recall this was a preforclosure that is scheduled for auction in April. Based on my educated / calculated guess at the interest rate and an amortization table, I figured the owner owed about $47K.

FMV: $62,000
List Price: $57,000
My First Offer: $42,000, all cash, 2 week escrow

Counter Offer: $55,000

My (informal) Counter Offer: $45,000, I pay all closing fees

I say informal because I didn't bother writing this up. I just called the agent and spoke with her. When I gave her my counter offer, she said it wouldn't fly because the mortgage company added on all sorts of fees and the loan payoff amount was up to $50,000. Then she played the age card, saying the owner was an old lady and couldn't just be kicked out without anyplace to go, so I'd have to pay more than that. And I agree that she shouldn't be kicked out on the street. However, I can't make a flip work paying 89% of FMV. Maybe if I was looking to rent the place out, I could have done something. I wished the agent well and we had an amicable parting.

If anyone looking to buy a rental unit in Phoenix is interested, drop me a line at 10thAvenueInvestments at Cox dot Net and I'll pass along the property info and all the info I uncovered in my research for a tiny finder's fee. It's a one bedroom condo in a really nice development with a pool and the whole development, including carports, is fenced. With a 20% down, 6%, 30 year loan and rent of $650, I think you could get a 25% return. I will only sell this info to one person, so if you buy it, you don't have to worry about me selling it to your competition.


orestn said...

Hi Shawn,

I've been reading your blog for a couple of months now. I stumbled upon your link in the Rich Dad site. I enjoy reading your blog - it's an inspiration on doing REI as well as on blogging. Keep up the good work!

Shaun said...

Thanks for the kind words!

© 2006 Shaun | Site Feed | Back to top