OfflineOK I feel like a deer on the headlight, I have 3 properties I am making offers on I have the contracts sign to go back to the agent with all 3 contingent to partners approval, and earnest money to follow 25 days after partners approval.
House#1 Beds:3 Bed Baths:1 Bath House Size:1,398 Sq Ft Lot Size:2.45 Acres Asking $52,900 Zestimate $67,700 Value Range: $52,129 to $85,302
MY Offer 37,375
House#2 Beds:3 Bed Baths:2 Bath House Size:2,228 Sq Ft Lot Size:0.25 Acres asking $45,000 Zestimate $114,300 Value Range: $88,011 to $176,022
MY Offer 19,250 Needs around 20,000 work
House#3 Beds:3 Bed Baths:2 Bath House Size:1,777 Sq Ft Lot Size:2.00 Acres Asking $59,900 Zestimate $86,500 Value Range: $63,145 to $126,290
MY offer 38,935
Now I'm frozen in my track's worrying and I am offering to much can I sell the contract's or house,
I do not have enough to cover EM.
Comment's Please.
Thank you.
Did you get comps on the props or are you basing your offers on Zestimate? Zestimate is not real accurate so you need to get your REA (or you could contact a title co) to get accurate comps. You want comps that are within the last 60-90 days on similar types of props and within 1/2 mile of the prop, if possible.
I see that on #2 and #3 you figured 65% , which is correct to use once you have the correct comps. Then you want to subtract repair costs (which you did on #2) but you forgot to subtract your fee from any of them for assigning the prop to your end buyer-very important!
What is your exit strategy? I am assuming it is wholesaling. Do you have a buyer's list?
You don't have to worry about not having the money. You have covered yourself with your clauses. If you can't find a buyer then your partner doesn't approve it.
Are these on the MLS? Or are they REOs? If they are REOs, they cannot be assigned. (You may know this already-just covering points, just in case you don't)
On #1, I wasn't sure how you got that number, but based on your Zestimate number, it is too high.
Good luck!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Karen,
Thank you.
My exit strategy at this point is just assigning the contract's, so I have that included in my offer price. But again Thank you for the reply.
Jim.
http://www.wix.com/jlsproperties/wholesale
Keep us informed as to how it goes.
Good luck!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Jim - any update on your offers?
- Tom
you have an exit strategy so that's good your buyers will let you know if they are good deals or how far off they are. I hope the best for you and I look at it this way I will make mistakes but I will learn from them, Sam
I was turned down on one of my offers and the counter was too much,and never heard from the others.So I am rebooting and getting ready to send out some more postcards looking for buyers and look for more homes to put offers on.
I shall keep on.
Yeah I changed my pic.
http://www.wix.com/jlsproperties/wholesale
Jim
I agree with Karen on all points, so DO get the comps from your REA, and if there are a lot of REO's in the area, make sure you see and note the difference between wholesale and retail comps (your agent should be able to provide you those two average comps). You'll feel more comfortable when you have this info.
Your note that you don't have EMD... you will need it, or you'll need to have your buyer ready to put it up which can be a bit challenging. I borrowed my first EMD.
Also, I see you said your exit strategy is assigning. Did you catch Karen saying REO's aren't assignable? Don't fret there are plenty of ways to sidestep that and lot's of info on this site about it. Make sure sure your offer doesn't say "/and/or assigns" in the case of REO's.
Go to it, and Good Luck!
- Tina
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Hi Jim I agree with Tina and Karen good comps are a must check with a realtor who can run them, keep working you will get there, Jim
jbischoff