WWDD? (What Would Dean Do?)

If you bought it for $65K and assigned it for $70K and with $15K in repairs, that would be $85K which is 78% of ARV. Most investors want to purchase at 65-70% of ARV so I don't think you would be able to assign it. Are they behind in payments? Ask if they would be willing to do a lease option. Then you could make profit in the front, middle and end. If they won't do that, I'd move on to the next one.

Shirley

Nancy,

Welcome to the DG family!

I agree with Shirley (sphi99). I am back and forth between Houston and SA, so I am familiar with the East Texas market somewhat. Are you from the Golden Triangle area, or more of the Big Piney Woods East Texas?

The investors I know of who are very active in the Golden Triangle area are buying properties at no more than 60% of ARV, - Repairs and - Wholesale Fee. Now to be sure, these are re-hab investors, not Landlord Investors. Sometimes you can find Landlord Investors who might be willing to pay just a little more, as they are looking to make their profits over a longer period of time and not just in and out real quick like.

These re-hab investors are having very good luck with properties that are still showing signs of distress from Hurricane Ike, which is now 4 years old. If you are from the Golden Triangle area, you know exactly what I mean by still showing signs of distress from Hurricane Ike (and Rita and Katrina for that matter).

You say the Seller was asking $80k; then he has now come down to $65k. I'd suggest calculating your MAO, your absolute MAO, and make an offer. If he/she doesn't accept, be polite and gain their permission to check back with them in about 30 days (sometimes time changes everything and an offer that may be rejected today oftentimes will be accepted later down the road {idk, 30, 60, 180 days later??}). So don't burn any bridges with this seemingly motivated Seller; be polite and make your MAO calculated offer. And after you make your offer, remain quite and let them speak next!

Good luck. Keep us posted as we would love to hear the results of your negotiation!

--Walter

'If it is to be, it is up to me'. -unknown

congrats for taking action!

I would recommend that you work on building your buyers list; once you have your buyers, you will know exactly what they are looking for, which will eliminate the guesswork of what will work and won't...

Thanks to those of you who reached out & gave me some ideas. I appreciate your input. We'll see what happens.

Nancy

search for what your buyers want. Sometimes we find deals and we should know if our buyers would even want to invest in the home or neighborhood. Tammy