Thursday, February 17, 2005

Houses 7, 8, 9, And 10

House 7 is an REO condo - a two story with 2 bedrooms and 1.5 baths. The bank took it back on a $25,000 bad debt. Comps are in the $55,000 - $57,000 range. Not much work is needed, maybe some carpet and paint. It was listed for $54,900 and I offered $39,700. I actually thought this might have a shot at being accepted since there was still plenty of room for the bank to make money. Unfortunately, this offer has gained the dubious distinction of being the fastest to be rejected - total time elapsed from offer to rejection: 1.25 hours. I didn't even get a counter-offer. The agent said a couple other people were interested, so the bank was going to wait a bit and see what other offers they get. I'm reminded of a story from another investor about how he or she sometimes runs into someone at the bank who thinks they are doing the bank a favor by holding out for top dollar, only to have to accept a lower offer later on. The bank is paying the $120 a month HOA fees, plus property taxes as this thing sits empty. Oh well. I'll check back in a couple of weeks to see if it's still available.

House 8 is a 2/1 house that is at the preforeclosure stage. The original loan was $100,000 and it is only 1 year old, so the payoff amount, with fees, is probably a bit more than that. Comps are around $115,000 - $120,000 and i's listed for $117,500. I offered $102,000 and a quick escrow (it goes to auction on March 18). I also pointed out I am not using an agent, so the sellers will save $3,060 by not having to pay a buyer's agent commission. The sellers also offered to pay for a home warranty, which I declined. Haven't heard back on this one, but I think the only way it will fly is if the bank will take a short sale. What I find interesting about this is that the sellers are including all appliances and offering a home warranty. This tells me they aren't completely broke. I think it may be possible that they might chip in some money of their own to avoid the foreclosure.

Houses 9 and 10 are for sale by a property wholesaling firm. One is a 3/2 house at $20,000 under FMV and the other is a 2/1.5 condo about $15,000 under FMV. Both just need minor cosmetic work. These are sold on a first-come, first-served basis, so I don't know if I'll get either one.

No comments:

© 2006 Shaun | Site Feed | Back to top