OfflineFirst, we are located in Washington state. I didn't even finish the last chapter of Dean's book before I had a property in sight. I found it by accident and it was a property I had admired for years. Apparently the owner passed away a while back and they haven't been able to sell it. We went to look at it and found out why. The owner had no heirs and had a personal representative who finally handed the property over to a real estate company to sell. They are trying to sell As Is because it needs some repairs. I got permission to call in a contractor to estimate the cost of repairs. Found out also that the property was assessed by the county at 122,615, the real estate people were asking 169,000. I offered 95,000 on a one year lease option with access to the equity for repairs and I would pay the taxes and insurance for that year plus 500 per month rent. The property is as follows: 2bd 1bth. 1 1/2 Story w/big basement on 6 acres cleared, fruit trees, view of sound and territorial views. There are two smaller rooms and a closet upstairs that could be bedrooms and an extra bathroom in the basement. There is a large garage/barn that will take 2 cars and an rv. It has two levels. The house has hardwood floors throughout made from old growth wood as is the garage. I got the call this morning saying that they were good with it but that they had to run it by the personal rep. I think he may say yes as he is desperate to sell. Now having said all of that....what do I do now? Anyone have some advice for this greenie? Hope so!
My very first jump. Right Now! I'm Freaking!!
Posted on: Thu, 06/09/2011 - 21:24
My very first jump. Right Now! I'm Freaking!!
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- by warnermomo_50
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Super job keb64! That's awesome!
If it's to be, it's up to me! Believe in YOURSELF!
Congratulations warnermomo_50! That's really awesome!
If it's to be, it's up to me! Believe in YOURSELF!
A one year lease/option gives you a great window for carrying out your exit strategy! And if you can do it with no money up-front, all the better! Ask for a short inspection period to cover yourself, get your contractor (or two) asap and figure those repair costs. THEN, if it were me, as soon as you determine it's a great deal and have it under contract, I would start running Craigslist ads and whatever free marketing you have in your area for a buyer, if that's what you're looking for. I would offer it as a "rent-to-own" at full marktet value, or "at a deep discount for cash". I would ask $10K or more down (non-refundable of course) as option deposit, and then whatever market rent will allow. It sounds like you could cash-flow pretty well in the interim. I would go with a 6-month period and choose a low-risk candidate myself, one that is already working with a lender. (There is always a chance that a tenant/buyer will not cash you out, so have other exit strategies in mind, and keep on posting here to walk it thru!)
Although this may not be an absolute steal percentage-wise, I think it could be a great opportunity because of the terms. A true no-money-down!
Those are just some quick thoughts, can't wait to hear it unfold! Good luck and have fun!!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
P.S. I like my ads to make people want to own/rent the place before they even see it. Be creative in your descriptions and include everything YOU like about the place and even the surroundings. I'll even use attractions nearby in my ads to make people WANT to live there.
CONGRATS AGAIN!!
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Well, they refused. But I am not done yet. I am waiting a little while and then I will try again. So far as I can tell only two other people have checked it out and they are related to me. A couple of my newly married nieces and nephews. They are trying to get their credit up. That property is "As Is" and they are going to have a hard time selling it around here. I already had a contractor out there. It will cost 11,000 in repair. Trust me, this is worth it. If I can figure out how to do this right I am thinking about renting until the market goes up then selling. By then anyone will be able to get a loan on it. Wish me luck. I have to do this by myself until I get the funds to join Dean's Academy.
If you can contact the personal rep and find out when the listing with REA expires and then make a deal with them directly
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
You know, I thought of that and even went so far as to find his phone number. Turns out he is local. I didn't place the call because I didn't want to invade his privacy. But now I think I have possibly overthought the situation. That Personal Rep is most likely itching to get out from under this property since, I think, he has to pay taxes on it until it sells. I will have to check Dean's book and find the proper paperwork for the deal I want to do. I better have it all in place just in case I can push this through. Thank you for the help. I am always open to suggestions and help.
Just call him and ask when the listing expires....then tell him after the listing expires, you are sure you can work out a deal with him to unload the house, because you work with a group of investors and save him some time waiting on the REAgents and save the 6% commissions
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
That shouldn't be a problem. If buyers want a territorial view, They just look out one of the window and see near old growth trees. If it's a Bay view they are looking for, look out the same window or another window. Do you like rolling hills and fields? Check out your front window at your six acres plus the acres surrounding it. There is not an angle you can look that doesn't have a view worth seeing!
Thank you! I will do that today. So appreciate the hand up!