About 6 months ago I found a motivated seller with a home that had been vacant for over a year. He owed $4k to the bank and after evaluating the property I made him an offer of $15k which would include the $4k payoff. The home was in need of about $20k – $25K of work.
It was my intention on wholesaling the property so when the seller asked for an additional $10K I agreed because $25k was still a good price for this 1800 sq. ft. 3-4b/2b house that had an ARV of $65k (MISTAKE). I found that you should always stay firm on your offer price.
Long story short after about 3 moths of trying to wholesale the property I was unable to move it. Had interest but nothing solid. Plus the seller had a partner that was no longer living in the states so paper work had to be sent to Africa, which is why I had so much time to find a buyer. I was faced with 2 options, walk away from the deal but still pay about $800 in international paperwork fees that my title company had begun processing or hold the property in my portfolio.
Another lesson learned; always go with your first thoughts. Mine was to cut my lost and pay the $800 in fees and walk away from the deal but a mentor suggested buying the house because even at @ $25k it was a good deal and the bank was giving me $20k in escrow to do the reno.
I am now 6 months into the project only because my repair team only works on the property part time because they are fulltime employees at the college we work at but their prices are way below market standards and quality is equal if not better.
At this point we are finishing up electrical updates; all new plumbing was needed and still has to be tied into the main and carpet installed then the final touches and cleaning.
I’m not in a flipping market but a great rental market and am thinking about doing a Lease Option Deal. I’m interested in hearing thought, opinions, suggestion and if anyone has ever had a situation like this.
About 6 months ago I found a motivated seller with a home that had been vacant for over a year. He owed $4k to the bank and after evaluating the property I made him an offer of $15k which would include the $4k payoff. The home was in need of about $20k – $25K of work.
It was my intention on wholesaling the property so when the seller asked for an additional $10K I agreed because $25k was still a good price for this 1800 sq. ft. 3-4b/2b house that had an ARV of $65k (MISTAKE). I found that you should always stay firm on your offer price.
Long story short after about 3 moths of trying to wholesale the property I was unable to move it. Had interest but nothing solid. Plus the seller had a partner that was no longer living in the states so paper work had to be sent to Africa, which is why I had so much time to find a buyer. I was faced with 2 options, walk away from the deal but still pay about $800 in international paperwork fees that my title company had begun processing or hold the property in my portfolio.
Another lesson learned; always go with your first thoughts. Mine was to cut my lost and pay the $800 in fees and walk away from the deal but a mentor suggested buying the house because even at @ $25k it was a good deal and the bank was giving me $20k in escrow to do the reno.
I am now 6 months into the project only because my repair team only works on the property part time because they are fulltime employees at the college we work at but their prices are way below market standards and quality is equal if not better.
At this point we are finishing up electrical updates; all new plumbing was needed and still has to be tied into the main and carpet installed then the final touches and cleaning.
I’m not in a flipping market but a great rental market and am thinking about doing a Lease Option Deal. I’m interested in hearing thought, opinions, suggestion and if anyone has ever had a situation like this.