OfflineI have been talking with a couple who need to sell asap (their family has outgrown their home and they bought property and are ready to build but the bank wants them to sell before they can secure the funds to start building). The house appraised 2 years ago for 70k, since then they have put about 20-30k of work into it. In order to payoff the loan they need 55k. How do I figure out if this is a deal? Does the additional updates they did increase the market value? There are no repairs needed at this point. Zillow, Real View and Realtor.com estimate ARV to be between 80-101k. I've been unsuccessful working with realtors to pull comps so I also worry about my end-buyer (another investor) being turned off by comps from zillow, etc.
Also, this would be my first deal, is it safe to sign an option to purchase agreement rather than a standard purchase agreement. I'm more comfortable with the option to purchase...but I'm confused once its signed and I find an end buyer do I assign my option to purchase or do I have to first go back and sign a purchase agreement and then the assignment?
Still learning, definitely need help....any POSITIVE advice, guidance etc is welcomed. I only say that because the naysayer positions are already filled with close friends and family, what I need more than anything is direction to close a deal!!
Nicole
nicoleryane
Working diligently to make that first deal!
Great Job on taking action with your dreams!Take the 3-4 highest comps that sold within the last 3 months and you will have your ARV. The market doesn't lie.It seems to me that you have answered all your questions.Market to landlords or buy and hold Investors.
I would put bandit signs around the property/area.
LandLord/Investor Specail!
3/2 2 car garage.
Ready to cashflow.
60k Cash!
That's after you get an option on it.
Many Blessings.
Thanks for the advice and encouragement! We are signing the option today YAY! I will definitely keep you posted on our progress..
Nicole
nicoleryane
Working diligently to make that first deal!
This was a question from the sellers, I ensured them that it was paid by the end buyer however I can't find it on the option to purchase agreement or on the assignment agreement that anybody pays the closing costs. Can anyone help?? Thanks again, nrj
nicoleryane
Working diligently to make that first deal!
Insert a line or add an addendum to the contract that states "Buyer to pay all customary closing costs".
Sounds like you may be using some generic contract downloaded off some website. Always have a local RE Attorney approve and/or modify your contract to ensure the contract is legal in your state and that you are adequately protected.
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