OfflineThis is a brick 3/1 with a full basement and double garage. 2095 SF.. Asking price was $105K. I could tell from the outside that it needed lots of work but didn't think it needed as much as it did. The owner gave POA to his son. They are Chinese and Owner is in China. He had been renting it to his "help". He owned a restaurant and it closed so it's been empty for 7 months. It is in a great location and a nice neighborhood. After asking questions, I found out that he owes $75K on it but was told payments and taxes were current. The basement has been divided into 5 rooms and there is 1 bath in the basement. All floors in the basement are still just cement. All floors on main floor are carpeted and it needs all new carpet. The huge kitchen needs new cabinets and all appliances and new flooring. The Bath upstairs needs updating. Most of the windows look bad and some are cracked so it will probably need all new windows. In general, it needs to be gutted. He did tell me the HVAC was 5 years old, roof was patched last year due to a tree falling on it, and it looks okay.. he said plumbing is good and electrical is good. There is a new water heater in the basement. The house has good bones, but needs lots of work. So I don't know how to evaluate the repairs, but my guestimate would be upwards of $30K... maybe more. Since he owes $75K, I asked the son if he would take $75K. He called his dad and he said he would take no less than $80K so I locked it up for that. I don't know whether to market it retail or wholesale. Totalview shows $131K and Zillow $138K. If it needs $30,000 in work and he wants $80000, that's $110,000 minus $80000 leaves $20K to work with. Does anyone think this is a deal or not? I just got tired of trying to analyze and figure everything out before I made an offer so I just went for it. I thought I'd take the 30 days and then figure it out!! LOL
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Great job, locking that up!! Your taking action which is great.I would go on Craigslist etc make some calls to Handymen or contractors and ask if they will come give you a free estimate, when they do have them put it in writing, that helps with negotiating also, .also these contractors know people , may know someone that would buy it from you.
Also start your marketing, the other great thing from this is you are going to have other buyers come forward, now you are building your buyers list. So if someone comes and looks at it and passes on it, then you get their information and now go find them a property. So only good things will come from this, you have your inspection time to get out, but I would get on it first thing in the morning, if not tonight.
Hope this help you
Keep us posted
Curtis Fillers
(Charlotte,NC)
Try and wholesale it for $85,000 to a cash buyer. I don't think if you try and retail it that it would APPRAISE for what you need. I don't think a lender would lend on a house in that condition.(no appliances) What home owner would want it??
Here are the numbers based on what you supplied. By the way, Zillow is meaningless. You need comps sold in the last 90 days, currently listed comps and under contract comps from a realtor to come up with true ARV. Zillow can vary $30,000!!
That would not be good on this one!
You also need to have a good estimate as far as rehab/remodel. Guesstimates don't work unless you know what you are doing.
Anyway, we will ASSUME your numbers are accurate. You know what assume means right?
ARV $138,000 x 65% = $89,700 minus repairs $30,000 = a $59,700 offer.
Even at 70% you are at a $66,600 offer price. This is max for a wholesale deal most of the time.
You offered 138,000 x 80% = $110,000 minus repairs $30,000 = $80,000.
Your buyer will be paying MORE that 80% of ARV minus repairs. That is pretty tight for a rehabber or land lord type cash buyer.
You never know until you try and sell it however, you might have a buyer that jumps right on it! If not you will have to give it back to the seller and on to the next with many lessons learned.
One lesson MAY be: You can not make a silk purse out of a pigs ear. Don't try, it is a waste of time.
However it turns out, you are TAKING ACTION!!! That is how you actually learn this business and meet REAL cash buyers. Way to go Shirley!! Now go make several more offers.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Good for you, Girl!
You are determined to make it happen!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
The comps of solds on T.V. are within 90 days and right now I don't have an agent. The one I had didn't work out so I am looking for another one. I am going to a REI meeting Monday night and I'll see if I can get a buyer there but in the meantime I'll start marketing it to investors. If I find someone I think I'll just assign it. The owner's son signed his name to the purchase agreement, but he didn't put POA after it. Should I have that corrected?
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
I'm hoping I'll get some buyers. That's a good idea to get someone to look at it and give me an estimate asap! The son is going to give me a key so that I can show it. Keep your fingers crossed for me!!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
I'm hoping I'll get some buyers. That's a good idea to get someone to look at it and give me an estimate asap! The son is going to give me a key so that I can show it. Keep your fingers crossed for me!!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
I'm hoping I'll get some buyers. That's a good idea to get someone to look at it and give me an estimate asap! The son is going to give me a key so that I can show it. Keep your fingers crossed for me!!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Yes I am determined to make SOMETHING happen!!
shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Michael seems to know how to get this done. follow his advice! You are moving now!
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
congrats on taking action and actually locking up a property! if for any reason you are not able to sell this one, at least you will gains tons of experience with it-make the most of it, and never give up!
Wishing you continued success,
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Congratulations on taking action! I want to start doing it too, I just don't feel 100% ready.
If you don't mind me asking... how much did you put for earnest money? Will you get that money back if the deal doesn't go trough?
If this is your first contract, how many offers did you make prior to getting this one accepted?
Thanks!
G
I put a star in the amount line and out to the side I put "earnest money deposit due at buyer's approved inspection.
This is my second contract and that one as well as this one was the first offer. It's easier to get an offer accepted from a FSBO than from one that is listed with an agent.
I was scared too both times, but I've decided to forget trying to analyze everything and if my gut feeling is that it can be a deal, I'm going to go ahead and take the plunge. I've had paralysis of analysis long enough!!!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Shirley, did you use the star and the phrase on both of your contracts? Were there any questions or comments from the seller about this?
The timing will never be perfect for you to pursue your dream, so you might as well start now.”
~ John C. Maxwell
No, I didn't know I could on the first contract and it was a long contract. I did all kinds of things wrong. I even signed as seller instead of buyer..haha.. but that one didn't work out. The seller lowered her price after a week and before I could get a revised contract to her, she sold it to her neighbor.
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Yes, it is good experience either way!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Yes, I know. Michael is pretty knowledgeable about this REI stuff!!!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
congrats for taking action! that's what it takes, taking action and feel confident what you are doing. I do also believe you should try to wholesale this baby, even if you make $2K on the property, it will be a winner for everyone and knowledge for yourself, $2K will be more money than yesterday, so try to make attractive for everyone and move it as quickly as possible. Good luck!
Tom and Jeri
www.TuCasaInvestors.com
www.TuCasaRealtyllc.com
Thank you. You're right.. anything is better than nothing!!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
The son has POA, but he signed his name only. Is that correct or should he have signed jos name, POA.. or should he have signed his father's name (the owner) and then his name as POA? I hope that's not too confusing. I guess if it goes to closing, the attorney would catch it if it's wrong. Anybody know for sure?
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
You're on!! But it's wine for me, not beer!!
Now everyone will think I'm a wino...Not... but I do like my Muscato wine.
I've already put an ad on CL and Backpage and Linkedin. without pictures.. I was too nervous today to even think of making pictures. Is that not crazy? But I'll make them and edit the ads. .. Now I'm waiting. I'll be showing it at the REI meeting on Monday night too! Hopefully I'll get a bite soon!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Good Job, Shirley!
I totally feel the pressure for you. Especially for our very first few offers.
Great job! you consistently taking action is some kind of motivation to me.
I'm in same boat with you! Wish best of luck for those of us who haven't got our first deal yet. appreciate our veterans for your guidance and support!
Never Give Up!!!
Sophie, the son has to sign his father's name then his name as the POA. When the closing happens the lender will give instructions as to how exactly it needs to be signed.
From reading these message I suggest you build your "team" starting with an attorney. Everyone in the real estate business is looking for more business and would welcome a team relationship in hopes of getting your future business. Find an attorney you would trust and set up a short meeting in his office to discuss building your team. Tell him/her that you are new at this and need some direction. Start with the contract you have now...which I think is not valid because the son can not sign his name on a contract. The contract is a legal document so you shouldn't sign before your attorney reads it. Are you a real estate agent? I didn't read that.
If you are not an agent then do the same with the agent. You should ask your agent to put you on a foreclosure drip campaign so you will get the new listings. Investors I am working with usually buy REO properties and they require the buyer to have an agent.
Do the same team building with a home inspector, pest inspector, appraiser and anyone else you think would be involved in a purchase.
You mentioned advertising on CL and more but you do not own the home and I don't think you have a valid contract. If you have someone call what are you going to say? Do you think someone might think it's a good deal then look up the owner in public records and offer a higher price? I think you should not market until this property is in your name.
Join your local real estate investors club also. Our club has a list of reputable contractors and subcontractors and yours should also. Plus, the members freely give advise that you would find helpful.
Be sure to have your buyers pre-qualified before you show your property or use your lender team member to pre-qualify your renters...they wo't rent forever the the lender can stay in touch with them until they are ready to purchase a home of their own.
Best of luck...stay excited...build your team.
Leah Tove
Mortgage Banker
Envoy Mortgage
You are doing a great job. Keep us posted on everything. Also let me know if you know Chad Carson, he is an Investor in the area, mostly Greenville- Clemson , but I am sure he has been at your REIA Meetings, he does Coaching.
Talk to you soon
Curtis Fillers
(Charlotte,NC)
No, I'm not an agent. I'll have to get the son to sign it correctly and maybe do a new contract.
As far as building my team, I can't seem to get anyone to do an estimate because they all want to be paid to do it. Maybe I'm not approaching it correctly.
I'm a member of an investors club and will be presenting it Monday night.
Good luck to you to Leah!
shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
I don't know him but I'll try to find him Monday night and tell him you asked about him. (Will that be a good thing or not?
)Did you do some deals with him? If he works in Clemson and Greenville, I'm sure he works in Anderson also.
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
This is wonderful! I think Michael is right on the money. Try to wholesale it for 85K and get a quick $5K. This is an investor's delight we all hear about. If you have a reator on your team, maybe she could give you a CMA for a better idea of the value because zillow is not accurate in the least (at least not here). You can also try this site as it has a nice format: www.finestexpert.com
What's nice about this site is that it has a map that dots out your comps and you can select the comps that are in the same neighborhood and of the same type and approximate age. If you are in a non disclosure state, I'm not sure if that part works, but at least it gives you a list of comps and rental comps and a nice idea of the comps on a map.
Make it happen Shirley! You gave such great effort on your essay and you did a great job, don't ever second guess yourself. If you get $5k here, we may be able to see you at the EDGE this year after all!
Shirley,
Try " Muscato Passito vino di Pantelleria" special kind of wine from Italy may be hard to find.
Nunzio
Nunzio
http://www.AlistrealtyNY.com
http://www.Any4closure4me.com
http://www.Houseinpain.com
Try " Muscato Passito vino di Pantelleria" special kind of wine from Italy may be hard to find.
Nunzio
I almost flagged you! I thought you were a spammer! HAHA! Then I remembered I had seen Shirley say something about Muscato on her post that I read the other day.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
I almost thought the same thing and I'm the one who said it....
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
I've never heard of that one but any Muscato is usually good. I like dessert wines!!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.