OfflineHi everybody!
I am very new to this but wanted to get into REI for a very long time but just didn't know how to go about doing it. I have read Dean's book - "Profit from Real Estate Right Now" and it has re-kindled my excitement! Now I am trying to overcome the fear factor to make my first deal.
I have found a possible deal that looks good on the surface enough to get a closer look. Here's the deal:
3 Bdrm, 2 bath single familty home in quiet neighbor hood. Good location. Year built 2002. Just neeeds cosmetic work done and landscaping. REO property. Listed for $59,900.
County assessor website shows the other 30 homes in this neiborhood has an average appraisal value of $100,000. Some are even owned by other LLC businesses which might indicate some are rental properties.
I need help with a couple of questions to help me get over the fear factor...
1) Does this look like a good deal(at least on the surface for further investigation)?
2) What kind of investment strategy would be best for me to take? (assign or rental)
3) What would be the first step? How do I get funds to lock a contract for assignment or long term rental?
4) How do I approach the bank who has the REO?
Thanks,
Ken
"Believe"
1)40 thousand in possible equity...that is pretty nice...and you may be able to get it cheaper since bank owned
2)assingment may not be accepted since bank owned...you can always try...worse they will say is no...could try to work something out with bank directly if you have credit to buy it and rehab...possible partner up with somebody. rental sounds good if you buy it and depending on what rents are going for in your area...possible nice cash flow property...
3)an offer in on the property...figure out your credit and make sure you can buy it to rent it...or even a quick flip...buy and resell
4)find out who the bank that owns it is...go in and ask to speak to the REO department, or if there is a number you can call to talk to them...
went through this quickly...I am sure you will get more advice...I am just in a hurry cause a full day of things to do...Good luck and hope this atleast helps a little bit
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Marc has provided some great advice. Once you determine what you may be able to purchase the REO home for may determine your exit strategy for the property. The better the deal turns out to be, the more options you may have. Good luck on all your deals. Believe and Achieve!
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keep that excitement rolling cause that is what is going to keep you motivated along with visiting this site and taking action. marc and joe give excellet advice. i agree talk to the person in charge of reo dept and see what they say about the price.ASK what the bottom dollar is that simple as you communicate with this person you may find that they will indeed take less. at this price alone and only 7 yrs old i dont believe u could build new.just the cost of land,material,well,septic,landscape,driveway, does it havea garage?? and so forth sounds like a good deal.check comps as well as sometimes appraise;s dont match comps. and vise versa.if u say only needs cosmetics u need to inspect FIRST that wouldnt cost nothing and u would be taking action immediately!! good luck!!! go get um
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