Deal on the water in NJ!

Deal on the water in NJ!

We had another offer accepted. Now, we need a buyer to assign the contract too. I have the info out to several buyers but, thought I would post here too. Just in case. Also, for any suggestions on the offer.

It is a single family, 4 bed/2 bath Colonial. It's situated on a dead end street. Very secluded! No neighbors next to it or directly across from it. It is a major fixer upper. The lot size is 83 x 175. Very nice property! Boat can be launched from it's shoreline. It does not have a garage but, there is plenty of room to add one. There is a kitchen on the first floor and second floor. It has beautiful views of the river from the wrap around porch and 3 sides of the home. Also, 2 shed's for storage.

We estimate the rehab at $140,000. That is with adding a garage on. Most of the homes in the area have garages.

We had a hard time with the comps. We eventually settled on an ARV of $650,000. We put in an offer of $350,000. Want to assign it at $365,000. We'd make a $15,000 assignment fee and the buyer could make a potential profit of $90,000+.

Anyone have any questions or suggestions?

Thanks.
Denise

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Allen & Denise
Denal Enterprises


We are on Leadtackle and

We are on **** and have sent many many many emails to investors and we have only ever had one response.

We are currently looking into buying a list from listsource.com. We're heard they are cheap. Going to look into it today.

__________________

Allen & Denise
Denal Enterprises


What else is going to go

What else is going to go wrong with this deal. Our attorney pulled out this morning. He basically said "You are signing a contract for a cash offer and YOU do not have the cash to buy the house." HUH? I called 2 other attorney's and they basically said "Assignment? What is that?" and then told me no way. Ugh! I am waiting for 1 more to call me back. I have to have an attorney by the end of the day or we are in trouble with this deal.

I am at a loss today. For once can something please go right.

__________________

Allen & Denise
Denal Enterprises


update

So, we have another attorney. But, still no buyer. I'm not sure what else to do with this anymore. We had a TON of calls on it and people were going to do drive-by's but, no response from them after that. The old house probably scared them. We are waiting for 1 more buyer to give us a yes or no. If he says no, then I guess we are going to lose this contract too. We're getting pretty discouraged.

__________________

Allen & Denise
Denal Enterprises


Learn from this...

D&A I feel for the position that you are in. I understand that you gave a deposit of $1000, don't know if you have any contingencies if no deal. I know the area a little, nice neighborhood. My opinion on why no buyers:
Very old home, large rehab for area. I'll call it more of a farm area. This area was know for horse breeding back in the day. I think you would need a special buyer for this property: loves large yards, loves alot of rehab, and most importantly, loves NJ, this is the hardest to find ( I can say this, I'm a jersey native).

What I really want to say is- use this for learning experience. This will guide you to a better deal next time. If you lose money in this deal,that hurts, but I'm sure you will learn not to next time.
One of the things my mentor told me was; Have options ready for the deal, know & stick with your numbers, if the deal doesn't add up.... NEXT
Were you able to get any feedback from the potential buyers why they didn't take the deal?
Keep moving forward... you have support on this site.

Joe
Joe


We will get our $1000 back.

We will get our $1000 back. I'm just disappointed. We have a buyer that specifically asked for something like this. He wanted something on the water, in a desirable area, $300K-400K price range with at least $100K in rehab. He is the one who has not given us an answer yet. So far he has said that he does not like that Fort Monmouth is right there. So, we hit all of his criteria but, he doesn't like the base there. Ugh! That is what makes this so frustrating.

We'll get over it just like the other deal we had to let go earlier this week. It's just frustrating. No other word describes it.

Thanks for the support.

__________________

Allen & Denise
Denal Enterprises


Allen and Denise

Don't be discouraged! Again, think of the education you are getting by taking action!! This is how you learn this business. This deal puts you one step closer to success.
Now analyze why this deal did not sell. Area, neighborhood bad? What is the average DOM for the area? ARV wrong? How did you personally determine the ARV? Repair estimate wrong? How did you get a very accurate rehab estimate? Was it just a matter of paying to much? One or more of the following reasons are why this was not a good wholesale deal.
Hopefully you increased your buyers list for future deals right? This is the best way to get real buyers, put out a deal!! Now you just have to supply a REAL deal! Work those numbers, if they won't accept what you need to pay to actually get the thing sold, move quickly to the next. Don't waste time paying too much.
You will evaluate a lot of properties, be quick in determining if it can be a real deal and move on to the next right away.
Increase your marketing to unlisted motivated sellers. That's where the most good deals are found. Network at REI meetings.

Last but not least, it's not over yet! Maybe a buyer will come along before you have to give it back. Maybe you can negotiate a price reduction!

Determination, Persistence!!!!

Michael Mangham
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


New drama for today

So, I get a call from my realtor today and she emails me a letter that was sent to her and my attorney from the seller's attorney.

The changes they want made to the contract is that this is an all cash deal. That the home is sold asis and that any inspections we do are for informational purposes only and not a contingency in the contract. And that the deal is not subject to our partner's approval.

He basically wants to knock out all of our subject to's so that we can't back out and get our $1,000 back.

Our lawyer already knows we will not agree to this. So, I hate to be negative but, I think I see this deal finally going completely down the toilet. C'est la vie!!

I guess we are going to have to put together a list of what needs to be fixed in the house and see if we can get them to drop the price (would be nice!!) or drop the deal and give us our money back.

On to the next deal!

__________________

Allen & Denise
Denal Enterprises


Hey Everyone! We're making

Hey Everyone! We're making a last ditch effort to save this deal. We are going to go back and try to get a price reduction. All of our buyers do not want the house at the price we have it under contract for. They feel it is too little profit for so much work.

So, we have a new price in mind and I will be calling our lawyer today to discuss it with him.

We have one buyer who will take it at a reduced price but, he has to get a mortgage. He wants to rent it out.

So, if this doesn't work, this makes our score 2 - 0. We also just found out we lost a bid on another house that we actually HAD a buyer all lined up for. Ugh! Soooo frustrating!

__________________

Allen & Denise
Denal Enterprises


NJ Beginner

I also am just beginning in NJ. I am so impressed with the fearless action you guys are taking! You are running into all the things I am scared of in NJ... The attorney and the realtor not understanding the creative investing side of real estate... I am in Sayreville NJ and would love to take you guys out to dinner and share thoughts and ideas! I have not made an official offer yet to a seller but I want to as soon as I can find a deal that makes sense. Where does Carol Stinson find them in NJ? LOL Private message me and let's get together!


I just realized that I

I just realized that I started this post on 7/12. It feels like I started it years ago.

I just got off the phone with our lawyer and he feels that the deal is pretty much dead. We have one buyer who wants it but, he wants it for $35K less then what we have it under contract for and he has to get a mortgage on it because he wants to only put $50K into it and rent it out. So, our lawyer says he will ask for the price reduction if we want but, he doesn't think the owner will go for it and he feels that us only making $4,000 assignment is not worth it to us. Huh? $4,000 will pay our mortgage on the home we live in for 2 months. My only concern is the guy not getting a mortgage or backing out.

So we could either have our lawyer ask for the price reduction and ask our buyer for our earnest money and our assignment fee up front (non-refundable) and then we'll assign the contract to him. Of course this is all contingent on the owner dropping the price. Or we can just get out. To be honest with you I am just tired of this deal and want it to go away. But, $4,000 for us is big right now. We need something to keep going.

Decisions.... decisions... What would you do? I need some expert help here.

__________________

Allen & Denise
Denal Enterprises


Allen and Denis

I would put in the new lower offer. It can't hurt, all they can do is say no.
I don't understand why your attorney is making the offer. Can't you just make the offer through your realtor or the sellers realtor? Is the law some how different where you are? You have to make property offers through an attorney? If not, don't. You control the deal and if accepted say "here you go Mr attorney, here is the paperwork, make it a legal transaction"
I would tell him he is not the one that determines if $4,000 will work or not. Arrogant realtors and now arrogant attorneys. Oh brother!
As part of the assignment contract, have the earnest money non refundable. So your buyer will sign and hand over the non refundable earnest at the same time. On a $300,000 deal $5,000 earnest would not be unheard of. If they put that up, you know they will buy. That type of non refundable earnest money will NOT scare off a REAL cash buyer. If they decline, they are BSing anyway and have no money themselves. No need to waste your time while some newbie tries to find a non existent **** type buyer!!

Good luck and go for it!
Michael Mangham
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


I love you Michael! You are

I love you Michael! You are always so much help. LOL

In NJ you have to go thru an attorney review period. So, he already has our original offer and paperwork. Any changes to that paperwork have to go thru him. That is why we have to have him ask for a price reduction in writing.

That earnest money will come off the price of the house, right? Then we would still have to wait until closing for our $4,000 assignment fee and the $1,000 earnest money we put down.

I guess a lawyer thinks $4,000 is peanuts. I can't wait until I can think that. LOL

__________________

Allen & Denise
Denal Enterprises


Ok, Everyone, do I dare say

Ok, Everyone, do I dare say I see a dollar sign in the light at the end of the tunnel!

finally have a buyer for this property. The only downside is he needs a mortgage but, at this point I don't care. My lawyer and real estate agent are concerned about this though. I broke the news to the REA last night and she was asking a ton of questions. Who is his mortgage company? If he is an investor, they only allow him so much. So, how many properties does he own? If his mortgage company is not WAMU, Chase or Bank of America she is going to require him to get qualified by one of the company's on her list. Huh?? Can she do that? I feel like I see the light but, the REA is in a football uniform blocking the way. LOL

__________________

Allen & Denise
Denal Enterprises