Help-Don't know what to do next

Hi Karen. Are you near the house or have you seen it? You need to find out what the comps are in that area for the same type of house. You will need to find out how much work it needs to bring it back to turn key ready. If what he wants for it is about 65% of ARV in that area get the home under contract.

What have you done so far with Dean's resorces? Have you read any of Dean's books? Are you in the academy or RBBP.

Steve.

Hi Steve & Veronica,
I did the 3 day academy with Scott and Michael and had gone to one of Dean's seminars. I'm in a rural area, I know the house and what he wants for it. Comps aren't too available because of the area. Zillow says around 130k and that it has increased in value $1,200 in the last month. I know it needs to have a plumber look at one of the toilets and I'm having a roofer look at the back part of the roof and get an estimate. I have an estimate for the carpet cleaning. Seller says he'd like about 130k but will negotiate. It's his brother's house who passed away a few months ago. He's asking 10k down but will consider less. I've asked 4k to find him a buyer, have title company draw the docs and he will carry the paper. I just don't know how to structure the paperwork. I have signed agreement stating he will pay me 4k for finding him a buyer but not sure what other docs I need to make the deal fly.

Thanks for any help.
Karen

As Steve and Veronica mentioned, to assign it to an investor, you should get a good discount. Investors want equity so they can get the property with no money down. If you cannot get the property with a large enough discount, then a lease-option with a retail buyer (normal homeowner) might be the best bet.
Again, good comps and good repair estimates would be needed to help verify if this property is a good deal or not.

If the seller is going to carry the loan and you have the money he wants for the down payment and you can rent it out for a positive cash flow it might be a OK deal. If you want to sell it to someone else you will need to buy it for a lot less. No one would want to pay full price. If it is worth 130k and he wants 130k it would not be a goood deal for an invester to buy. 100k would be better if it needs little to no work. If there are repairs needed take that amount away from 100k.

It depends on what you want to do with the property.

Steve.

Thanks, Steve. Don't have the money for the down. I just need to know how to tie the property up and then assign it. I have the Assignment of Contract from this site but not sure how to proceed with the contract. Do I do an Agreement to Purchase, find the buyer and then assign? Confusing to me because the property is free and clear and the owner is willing to carry. There was another strategy at the workshop where my LLC lease with option and then I would find a buyer and lease to him for a profit. Like I said, confusing. I'm so new at this but I know this is a great first deal for me. Just want to get my feet wet.

I appreciate your help and everyone elses.

Thanks much,
Karen

Who is going to buy the place and how will they make money? Are they a cash buyer? Do they need financing?

Michael Mangham
MD Home Acquisitions LLC

Karen Michael is the man when it comes to wholesaling so listen to what he has to say.

As far as the numbers you have shown here the seller wants too much money for the property for you to wholesale it. Just going by your numbers.

steve.

You: "I understand that you would like $130k and if your house was in perfect condition it would be worth $130k, but the problem is, you are competing against foreclosures on the market right now."

Seller: "Yea I understand that."

You: "I can buy the foreclosure down the street for $65k and I understand that you would like to have $130k but it you want to sell your home in the next 12-18 months I'd say go call a realtor and put a for sale sign in the yard for $130k."

Seller: "I don't want to/can't wait 12-18 months to sell this thing."

You: "I can give you the sell fast price of the foreclosures that everyone else is buying and that is about $65k.

If the seller says no, WALK AWAY. Let them sit on it. They will come back begging you to buy their house at $65k because they couldn't get it sold.

Im working on a deal right now that I walked away from TWO MONTHS ago.

I have it under contract for 50% of the ASKING PRICE!

GET IT DONE!

P.S. This script came from Matt Larson.

Use it, IT WORKS!

Where is this house located? I live in Coolidge. It's better to get a general contractor or 2 to come out to the house to get you an estimate, instead of a few separate contractors unless you know for a fact it needs only cosmetic work.

So, if the house is free & clear, and he's wanting $130k but he's negotiable on the asking price, and it sounds like you could get seller financing if the numbers worked out, you have a few options here. You need to get the after repair value (comparables mostly). At that point, you can run the numbers & make the decision(s) on what you want to do.

I'm in Northern AZ just out of Prescott. Very rural. Thanks for advice from everyone. I appreciate it.

Karen

you can do a sandwich L/O with this property; Keb (post #3) gave you great advice on how you can make it work... with the seller carrying the note. You can look for a buyer who wouldn't mind doing the rehab work while leasing the property.
To assign the property you need to have a buyer lined up who is willing to pay the aksing price plus your fee...

Also, you may want to fill out some info on your profile so that other investors know a bit about you and how to help you...

wishing you success,
Valerie

Valerie,
Thanks so much for the advice. I appreciate it. I see you're always there to help someone and that's special.

Karen

If you are unsure about the contracts you are going to use, take the contracts and have them checked out by a real estate attorney. Any other legal questions you have, you need to ask an experienced RE attorney.
Good luck on your deal!

RENinja