OfflineI have finally (after 10 weeks) of being a member of the success academy, and a very informationally packed visit from Matt, locked up a REO. I am torn between trying to fix up the property, which should only be $10,000 to fix up, or try to wholesale it? I was able to obtain private money lender(through a mortgage broker), but still needed to come up with $40,000 of my own money to buy the house. I am getting to be shorter and shorter on money for the fix ups, so do I place it on craigslist and offer it for $20k more than I got it for? Homes in the area are comping out at $185,000-$205,000. I paid $133,000 for the home, and there are so many fees involved, that you never think about when you are getting into this deal thing....insurance, surveys, points, interest charges, fees to the county to get utilities turned back on, lender fees, recording fees, tax stamps, etc., etc., etc. the list goes on and on!! My $133,000 home at closing will cost me $145,000. Granted there will be fees returned when I sell, but that doesn't help the need for money to get the fix ups done. I am planning on putting a lot of sweat equity into the deal, but I am now thinking that wholesaling for a $10-15,000 profit may look better at this point in time.
Just looking for some advice, or previous experience with this issue.
Thanks DG family,
Bill
Since you don't have a lot of extra cash & all the additional fees are making you crazy; just wholesale the house off to a Cash Investor, even if you only make 5K to 10K. No Worries, No Repairs, No Mortgage problems, just a check.
Good Luck.
Did you already purchase the property or is it just under contract? If it is just under contract then wholesale it for sure. If you already bought it then finsih the race and get that house back on the market!
If you wholesale it make sure to put up bandit signs, craigslist, call real estate investment clubs, call the cash buyers in your area, goto the auctions and tell the top bidders about it (make sure you create flyers for the property) and hand them out to everyone! Keep me posted!
FYI-The Black Card is providing a lot of entertainment!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Hey Matt, thanks for the response. I have the house under contract. I have already placed adds on Craigslist both here and in the UK, as Rotonda is heavily populated by the British. I am definitely planning on trying my best to get rid of it hopefully the day after I close on it,or even the same day. I have a list of some buyers that I have gotten from your secret technique, and I have also been following the county auctions, so I have a buyers list there as well. Hoping that my realtor will use his British contact list to see if anyone might be interested within his previous clients friend circle. Trust me, I am forging forward, and am liking the wholesale idea more and more. Even if I only get 5 or 10K more than I paid for it, that would be deal 1 and 2 towards the 5,, but my personal goal of 40 in a year....I will need to get my a@# in gear to catch up to the superstar of the DG family!!
gceriani- thanks for the advice, the first one is always the toughest to get done,and figure out what to do from there should be easy, at least that is what I have heard.
Well, it is out there, anyone know of anyone who would like a 3/2 pool home in Rotonda Florida for a mere $160,000, let me know. I will definitely send a finders fee your way if something works out. NO OIL yet, still beautiful white sandy beaches, and plenty of sunshine to go around!
Thanks all!