Offer #1
Exit Strategy: Owner Finance
Potential Net Profit: $36,000
Annualized ROI: 79%
Offer #2
Exit Strategy(1): Rent
Potential Cashflow(1): +$100/mo.
Exit Strategy(2): Owner Finance
Potential Net Profit(2): $35,000
Annualized ROI(2): 90%
Exit Strategy(3): Sell Retail
Potential Net Profit(3): $15,000
Annualized ROI(3): 43%
Offer #3
Exit Strategy(1): Rent
Potential Cashflow(1): +$100/mo.
Exit Strategy(2): Owner Finance
Potential Net Profit(2): $26,000
Annualized ROI(2): 64%
Offer #4
Exit Strategy(1): Rent
Potential Cashflow(1): +$150/mo.
Exit Strategy(2): Owner Finance
Potential Net Profit(2): $25,000
Annualized ROI(2): 77%
3 comments:
As luck has it as soon as I sent the email to my agent and made this post, I learned that the property for Offer #4 was already sold.
BTW, the winning bid on the property for "Offer #4" was exactly $205 higher than what I would have bid. I wasn't too hurt about not getting it as it was actually located a good distance from my house and would have been a pain to commute for repairs and maintenance.
B -
It really depends. I've seen them go for more than list. while other times I've seen them go below list. Lately, most have been going for about 95% list. The bid I just lost by $205 was won at 88% list. My agent told me that HUD won't even process the offer unless the list price is 87% list (good tip) - at least for my area right now. So, I've been submitting bids that are at least 87.01% list (and rounded up to the nearest $100).
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