OfflineI found a house with a yellow sign in the porch window that said FOR SALE BY OWNER. It is right across the street from where my parents live and this is a really clean and low crime neighborhood. Three homes have sold wihtin the last month in this neighborhhod. Well me and my associate looked at the house on Sunday and this property is a diamond in the rough. Apparently the investor bought the property from the bank and paid 40k and is in the process of remodeling it and selling it for quick cash. But he hasnt had time to bring in his crew to fix up the place cuzz he owns sixty properties and works a full time job. The property needs work but it really has potential to be a good rental property. I was thinking of a lease option strategy but u cant rent the house out now in the condition its in. Maybe u could after the fact its renovated. I still have to figure out the FMV OF THE PROPERTY AND DETERMINE ACTUAL REPAIR COSTS. What should i do with an opportunity presented to me like this? Should i try to get the property under a lease option before or after its renovated? What questions should i ask the seller when i call him again to help make it a win win situation for everybody? PLLLLLLLLLLLLLLLLLLEASE HELP?
Opportunities poping up in my backyard
Posted on: Fri, 07/20/2012 - 03:13
Run your ARV number, first. Maybe this could be a wholesale deal for you.
Ask the seller if he is willing to sign an Option Agreement. This would give you the right to buy the property at whatever price the two of you agree upon, but not the obligation (Also, option contracts usually only state a $10 non-refundable consideration, so you're not out a lot of money... and, the seller rarely even asks for the $10).
Then, get some contractors to give you free estimates on the repairs, and run your comps.
You should be ready to make an informed decision at that point.
Stephan Roberts
"In absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia!"
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What happened with this, oertelaj?
and STILL has a full time job???
Fishy... I'd research him and the 60 properties
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
You answered your own question. You have to find out the ARV and repair costs before you can tell if it's worth your time. I know some experienced investors lock up properties blindly and then worry about them later, but I'm not sure it's the best path to take for your first deal.
Go to trulia.com and look at the recently (last 3 months) sold for the properties in the immediate area (half mile radius) with similar specs of that house to see roughly what it's worth. Also check out Dean's useful tool totalviewrealestate.com
To find out the repair costs, you can always ask the seller. If he truly has 60 other investment properties, he probably has experience and can tell you a pretty close estimate. But if you want to be sure, you can always call some contractors and have them come out to the property to give you a true estimate.
Hope that helps, best of luck to you!
And remember, if that one falls through, the next one is right around the corner!!!
Dominic
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I agree with Mike. Sounds fishy that he says he owns 60 properties and still has a full time job. Think about it if you owned just 10 props cash flowing say 600 per month that is 6k total per month. why would you need another job, never mind 60 props.
Definatly do your research on him as well as the property.