Potential Ugly House Deal - Feedback Please!

[MonteDobson]

Have found a potential UGLY HOUSE deal that I am in the process of evaluating. Here are the details:
"We have a house we would like to sell in Eastview, it will need basement work, and top end will need updating and reno`s, but due to the fact that we have a large family and no time we opted not to do it ourselves as had planned. We would like to sell immediately, was renting for 800.00 a month but being landlords is not what we want. We are looking for around 90,000 as houses that are done sell for considerbly more. Immediate possesion is available, but are not looking for deals or agreements for sale. Serious inquires only. To arrange to view the house please email with contact number so we can arrange a time. Thanks"


ARV = $160,000 (still need to do some more homework to confirm!)
Renos = $25,000

MAO = ($160,000 x 70%) - $25,000 = $87,000

Thoughts/Comment???

 

[ZanderRobertson]

My understanding is that you`d have to offer below MAO as MAO is what you`d likely sell the house for (wholesale). So, you`d have to offer $77,000 max since the spread between MAO and your purchase price has to be minimum $10,000.If you`re rehabbing yourself, then you can offer MAO.
That`s my understanding.

Others?

How did you find this deal? FSBO? yellow letter? AD?

QUOTE (C2Ventures @ Oct 22 2009, 02:39 PM) Have found a potential UGLY HOUSE deal that I am in the process of evaluating. Here are the details:

"We have a house we would like to sell in Eastview, it will need basement work, and top end will need updating and reno`s, but due to the fact that we have a large family and no time we opted not to do it ourselves as had planned. We would like to sell immediately, was renting for 800.00 a month but being landlords is not what we want. We are looking for around 90,000 as houses that are done sell for considerbly more. Immediate possesion is available, but are not looking for deals or agreements for sale. Serious inquires only. To arrange to view the house please email with contact number so we can arrange a time. Thanks"


ARV = $160,000 (still need to do some more homework to confirm!)
Renos = $25,000

MAO = ($160,000 x 70%) - $25,000 = $87,000

Thoughts/Comment???

 

[MonteDobson]

QUOTE (ZanderRobertson @ Oct 22 2009, 02:49 PM) My understanding is that you`d have to offer below MAO as MAO is what you`d likely sell the house for (wholesale). So, you`d have to offer $77,000 max since the spread between MAO and your purchase price has to be minimum $10,000.

If you`re rehabbing yourself, then you can offer MAO.

That`s my understanding.

Others?

How did you find this deal? FSBO? yellow letter? AD?

Yes to wholesale you want a minimum $10,000 spread with your MAO. This is a FSBO ad that I came across.

 

[travis]

Hi Monte,

How did everything work out?



QUOTE (C2Ventures @ Oct 22 2009, 02:54 PM) Yes to wholesale you want a minimum $10,000 spread with your MAO. This is a FSBO ad that I came across.