Milan Ave.

Just received a counter-offer on a property.  They want full price, $43,400.  I told my Realtor’s staff to say, “No”.  I wondered if they understood why my offer was at $28,850.  Trying to be as simple as I can, I explained that I made the assumption that the repairs will more than likely be between $15,000 to $20,000.  The ARV is said to be at $85,000, but I dropped it to $80,000.  In any case, if I refinanced at 70% LTV, I would only get back between $56,000 to $59,500.  That is not enough to cover the amount I would have put into the property.  Yeah, I can do an 80% LTV.  But, the higher the LTV, the more difficult to refinance.  The rule is 70% or less.  Oh….and if I wanted to wholesale this to a cash investor…it wouldn’t make sense.

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~ by Llew Quinol on April 1, 2010.

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