OfflineOkay,brand new at this and want so desperately to succeed in RE investing but like so many others no money, bad credit.
Here is the scenario: After reading Dean's books, and focusing on the wholesaling aspect for obvious reasons, I looked in my local paper want ads, and found something that looked interesting,which read "(2) houses appraised at 145,000 each, will sell for 119,000 on half acre lot, houses are like new." So I called out of curiosity. The owner is a builder and told me he built these two homes 3 years ago and he rents them out for $1,200/month each. I have not driven by yet to look but will this weekend. He told me he just put the ad in paper last week (around 7/1).
I am wondering how to handle this - it sounds great, but then I am a very, very new novice. What do you think....is it something I should try to wholesale, or lease purchase or not worth it.
I should mention that he says he is tired of renting and just wants to get rid of them because he has so much property on his hands right now - which to me sounds like he is trying to liquidate some of as he told me had other property such as 5 Jim Walter homes, never lived in he bought when they went out of business here, and 2 mobile homes, etc.
Thanks for any insight as I am warrior and determined, but absolutely no money or credit - only determination!!
Here is my advice to you... If he is trying to unload his inventory so to speak (sorry too many yearsin retail business), then I would definitely get to know him. Offer him to find buyers for his houses and work on a finder's fee basis. Find out what he is willing to pay as a finder's fee. If he is trying to sell 5 houses and you find him 5 buyers while he pays you 2K finders fee for each -- you make 10K without even tying up any of the resources. That's just my opinion.
Another thing you can do is go through all of the houses and get good description of them and start listing them (advertising) on craigslist, local newspaper, etc. You may find an end buyer and do a double closing or find another investor and do assignment of contract.
One thing is for sure, I wish I knew this guy -- you can make some money with him.
Yuri
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
Hi PW5082,
Congratulations on joining the greatest opportunity by far! It sounds like you are off to a great start! Was this a recent appraisal of the property done? If so, it sounds great. And it looks like there is still a great deal of negotiating room in the offer price. There is a possibility that the builder will hold the note for you, and it would give you a monthly cash flow, to help you gain capitol for future purchases. If that is not an option. Since you mentioned your credit is an issue. I would lean towards assigning the offer. You can also do a double closing. Do you have a buyer in mind? So many ways you could approach this opportunity. But negoitiate the offer price even lower. Either way he is a great resource to have. He probally has many others. WoW! Review the book and find which direction best suits your dreams. And Go for It! Much success with this..........Lubertha
"GOD IS STILL IN CHARGE, HE IS THE AIR WE BREATHE"
Lubertha:
Thanks for mentioning the option of the builder holding the note... I knew I forgot something!!!
Yuri
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
I am impressed with responses. Assignment is what my initial instinct was leaning towards..But holding a note, which makes me responsible for finding the renters which makes me a little uneasy in the event I cannot find a renter and I would be responsible for making that 1200/payment on one.
I plan to check out the premises this weekend, and will try craigs list to see who responds and take it from there, and in meantime consider the holding note option... and do a lot of praying.
Thanks again to you both - Yuri and Lubertha -
Good luck and if you have any questions -- ask away.
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --