The Hail Mary all cash offer

[waiting hawk]

[quote=bearishgurl]Yes, I would go for it, scaredy, if your spouse agrees to living with the constant inconvenience of DIY projects for maybe 1-3 years.

If your prospective fixer’s “fixed-up” value is over $1M, I would offer 50-60% of that with no contingencies, make that my last, best and final and give the seller (lender?) ONE WEEK to accept/counter. If they don’t respond or come back without a counter but stating they have other offers, WALK. When they come to their senses, they’ll surely contact YOU.

scaredy, I believe that we now have before us an unprecedented opportunity make a successful “very lowball” offer on our “dream property.” I know well the *exuberant feeling* of taking possession of a fixer, that, under normal circumstances, I could never afford. I would LOVE to have the stamina and resources to be able to do this at this time!

Some pointers from my past experience doing this with tract houses:

BEFORE PLACING your offer, inspect (or have inspected) the foundation and/or potential for lot accretion. If there are problems with the foundation, I would only offer 40% of “fixed-up” market value. If there are problems with past lot accretion, I would NOT make an offer on the property. If the property backs into a cliff, measure front to back yourself and compare with the plat map on file with the assessor.

Immediately after closing and before occupying, have the septic system repaired/serviced, remove all dead trees and mow ALL the weeds down (to prevent fire danger and local fines/liens).

Make sure at least one complete bathroom is completely operable before you move in.

Paint your childrens’ rooms first thing the colors of their choice and tell them to hang all the posters they want in their space to make them feel okay about living in substandard conditions for awhile. For any kids under 10 years old, pop up a teepee or tent in their room and tell them they’re “camping.”

If the appls. don’t work, bring a hot plate, lg. toaster oven, microwave and smallish frig to use. DON’T BUY ANY APPLS until you remodel the kitchen!

Remodel the rooms in this order: 2nd bath, kitchen, MBR, FR . . . then the rest. Store everything you’re not using will be in your way in the garage, outbuilding or pod.

Do the landscaping last but clear any existing cement or gravel to set your BBQ grill on (without a working stove you will use it a lot).

Another tip: since you’re an atty, if you haven’t already done so, sit for the CA RE Broker exam at the next available opportunity. You will be exempt from the four-consecutive-year active Salesperson requirement. This license will become invaluable if you ever need to unload the albatross for any reason.

scaredy, I’m sure you were just trying to be facetious about using the 0% credit card offers and withdrawing retirement funds with a penalty to purchase property :=) Of course, I would not advise doing this.

Good luck in your offer!![/quote]

Now….. that is one solid damn post there!

[SD Realtor]

Given the direction of the economy and such I would not touch it. You keep making reference to “a flipper”. Well if it was a good deal and a flipper “could” make money on it, that house would have already been purchased.

Right now we see so many purchases made at the county courthouse that in our opinion are way out of range with regards to margins that it is crazy.

Inventory is going up, the economy clearly is slipping again, and you are proposing liquidating all of your assets to purchase a home which you will then need to complete. You are “estimating” 50-100k to finish but have you had a contractor in there yet? After you liquidate all of your funds how do you think a bank will feel about lending you money since you just shot your wad?

I think that you need to step back and analyze this a little more objectively. Living in squalor while your home gets finished is the easy part of the equation. Everything else sounds pretty shaky to me.

[SD Realtor]

Given the direction of the economy and such I would not touch it. You keep making reference to “a flipper”. Well if it was a good deal and a flipper “could” make money on it, that house would have already been purchased.

Right now we see so many purchases made at the county courthouse that in our opinion are way out of range with regards to margins that it is crazy.

Inventory is going up, the economy clearly is slipping again, and you are proposing liquidating all of your assets to purchase a home which you will then need to complete. You are “estimating” 50-100k to finish but have you had a contractor in there yet? After you liquidate all of your funds how do you think a bank will feel about lending you money since you just shot your wad?

I think that you need to step back and analyze this a little more objectively. Living in squalor while your home gets finished is the easy part of the equation. Everything else sounds pretty shaky to me.

[SD Realtor]

Given the direction of the economy and such I would not touch it. You keep making reference to “a flipper”. Well if it was a good deal and a flipper “could” make money on it, that house would have already been purchased.

Right now we see so many purchases made at the county courthouse that in our opinion are way out of range with regards to margins that it is crazy.

Inventory is going up, the economy clearly is slipping again, and you are proposing liquidating all of your assets to purchase a home which you will then need to complete. You are “estimating” 50-100k to finish but have you had a contractor in there yet? After you liquidate all of your funds how do you think a bank will feel about lending you money since you just shot your wad?

I think that you need to step back and analyze this a little more objectively. Living in squalor while your home gets finished is the easy part of the equation. Everything else sounds pretty shaky to me.

[SD Realtor]

Given the direction of the economy and such I would not touch it. You keep making reference to “a flipper”. Well if it was a good deal and a flipper “could” make money on it, that house would have already been purchased.

Right now we see so many purchases made at the county courthouse that in our opinion are way out of range with regards to margins that it is crazy.

Inventory is going up, the economy clearly is slipping again, and you are proposing liquidating all of your assets to purchase a home which you will then need to complete. You are “estimating” 50-100k to finish but have you had a contractor in there yet? After you liquidate all of your funds how do you think a bank will feel about lending you money since you just shot your wad?

I think that you need to step back and analyze this a little more objectively. Living in squalor while your home gets finished is the easy part of the equation. Everything else sounds pretty shaky to me.

[SD Realtor]

Given the direction of the economy and such I would not touch it. You keep making reference to “a flipper”. Well if it was a good deal and a flipper “could” make money on it, that house would have already been purchased.

Right now we see so many purchases made at the county courthouse that in our opinion are way out of range with regards to margins that it is crazy.

Inventory is going up, the economy clearly is slipping again, and you are proposing liquidating all of your assets to purchase a home which you will then need to complete. You are “estimating” 50-100k to finish but have you had a contractor in there yet? After you liquidate all of your funds how do you think a bank will feel about lending you money since you just shot your wad?

I think that you need to step back and analyze this a little more objectively. Living in squalor while your home gets finished is the easy part of the equation. Everything else sounds pretty shaky to me.

[bearishgurl]

scaredy, I just read your most recent post. I assumed you were looking for acreage (the types of properties you posted in recent months that you were looking at).

My post still stands for advice on purchasing acreage but with $200K down and a $300K loan. $300K at a 4.5% 30-yr. fixed loan is $1,521 a month, which, without taxes and insurance, is cheaper than your rent payment.

If you’re happy where you’re renting right now, I wouldn’t buy into another tract in your situation. The REAL softness (and thus opportunity for “sweat-equity”) is in the (formerly) $1M+ albatross-foreclosures that are a mess inside and out :=}

[bearishgurl]

scaredy, I just read your most recent post. I assumed you were looking for acreage (the types of properties you posted in recent months that you were looking at).

My post still stands for advice on purchasing acreage but with $200K down and a $300K loan. $300K at a 4.5% 30-yr. fixed loan is $1,521 a month, which, without taxes and insurance, is cheaper than your rent payment.

If you’re happy where you’re renting right now, I wouldn’t buy into another tract in your situation. The REAL softness (and thus opportunity for “sweat-equity”) is in the (formerly) $1M+ albatross-foreclosures that are a mess inside and out :=}

[bearishgurl]

scaredy, I just read your most recent post. I assumed you were looking for acreage (the types of properties you posted in recent months that you were looking at).

My post still stands for advice on purchasing acreage but with $200K down and a $300K loan. $300K at a 4.5% 30-yr. fixed loan is $1,521 a month, which, without taxes and insurance, is cheaper than your rent payment.

If you’re happy where you’re renting right now, I wouldn’t buy into another tract in your situation. The REAL softness (and thus opportunity for “sweat-equity”) is in the (formerly) $1M+ albatross-foreclosures that are a mess inside and out :=}

[bearishgurl]

scaredy, I just read your most recent post. I assumed you were looking for acreage (the types of properties you posted in recent months that you were looking at).

My post still stands for advice on purchasing acreage but with $200K down and a $300K loan. $300K at a 4.5% 30-yr. fixed loan is $1,521 a month, which, without taxes and insurance, is cheaper than your rent payment.

If you’re happy where you’re renting right now, I wouldn’t buy into another tract in your situation. The REAL softness (and thus opportunity for “sweat-equity”) is in the (formerly) $1M+ albatross-foreclosures that are a mess inside and out :=}

[bearishgurl]

scaredy, I just read your most recent post. I assumed you were looking for acreage (the types of properties you posted in recent months that you were looking at).

My post still stands for advice on purchasing acreage but with $200K down and a $300K loan. $300K at a 4.5% 30-yr. fixed loan is $1,521 a month, which, without taxes and insurance, is cheaper than your rent payment.

If you’re happy where you’re renting right now, I wouldn’t buy into another tract in your situation. The REAL softness (and thus opportunity for “sweat-equity”) is in the (formerly) $1M+ albatross-foreclosures that are a mess inside and out :=}

[bearishgurl]

[quote=walterwhite]Here’s how I see it. If we take $200plus and offer it on this house and if by some miracle it were accepted, we’d have a house that based on the comps in the area I’m comfortable we could get appraised for 450 if it were all finished up and reasonably nice. I know the area well. Yeah, I could see that number coming down, way down, as I am heavily bearish. Also, interest rates could jump, and we might have the value plummet a hundred k or so and make it not possible to finance the place down the line for anywhere close to the value today[/quote]

scaredy, this is all the more reason why you should NOT invest $50-100K + “fix-up money” on ANYTHING less than a property in what was a formerly (3-5 yrs. ago) $1M + area.

You currently have a good rental rate. I would look only at acreages as you have been doing, even if they would take me FIVE YEARS to fix up properly!!

[bearishgurl]

[quote=walterwhite]Here’s how I see it. If we take $200plus and offer it on this house and if by some miracle it were accepted, we’d have a house that based on the comps in the area I’m comfortable we could get appraised for 450 if it were all finished up and reasonably nice. I know the area well. Yeah, I could see that number coming down, way down, as I am heavily bearish. Also, interest rates could jump, and we might have the value plummet a hundred k or so and make it not possible to finance the place down the line for anywhere close to the value today[/quote]

scaredy, this is all the more reason why you should NOT invest $50-100K + “fix-up money” on ANYTHING less than a property in what was a formerly (3-5 yrs. ago) $1M + area.

You currently have a good rental rate. I would look only at acreages as you have been doing, even if they would take me FIVE YEARS to fix up properly!!

[bearishgurl]

[quote=walterwhite]Here’s how I see it. If we take $200plus and offer it on this house and if by some miracle it were accepted, we’d have a house that based on the comps in the area I’m comfortable we could get appraised for 450 if it were all finished up and reasonably nice. I know the area well. Yeah, I could see that number coming down, way down, as I am heavily bearish. Also, interest rates could jump, and we might have the value plummet a hundred k or so and make it not possible to finance the place down the line for anywhere close to the value today[/quote]

scaredy, this is all the more reason why you should NOT invest $50-100K + “fix-up money” on ANYTHING less than a property in what was a formerly (3-5 yrs. ago) $1M + area.

You currently have a good rental rate. I would look only at acreages as you have been doing, even if they would take me FIVE YEARS to fix up properly!!

[bearishgurl]

[quote=walterwhite]Here’s how I see it. If we take $200plus and offer it on this house and if by some miracle it were accepted, we’d have a house that based on the comps in the area I’m comfortable we could get appraised for 450 if it were all finished up and reasonably nice. I know the area well. Yeah, I could see that number coming down, way down, as I am heavily bearish. Also, interest rates could jump, and we might have the value plummet a hundred k or so and make it not possible to finance the place down the line for anywhere close to the value today[/quote]

scaredy, this is all the more reason why you should NOT invest $50-100K + “fix-up money” on ANYTHING less than a property in what was a formerly (3-5 yrs. ago) $1M + area.

You currently have a good rental rate. I would look only at acreages as you have been doing, even if they would take me FIVE YEARS to fix up properly!!

[Author]

Posts