OfflineI have a 3 bed, 2 bath 1272sqft house under contract. The house is free and clear.
Asking price = $45K
Contract price = $36K
Repairs = guesstimating ~$15K
2008 tax appraisal = $112,835.00
Realtor CMAs (sold) for the area = $163K (average) with average DOMS = 49.
The area isn't the best in that schools are definitely graded poorly. The street/neighborhood looks OK I suppose but I wouldn't want to live there. This house (vacant) and 2 other houses (which are occupied) do nothing to make it look better. I suppose this is the typical ugly house. The house was built in 1951.
I was going to flip this to an investor for a finders fee (i.e. $2K-$5K), but I have another investor who want's to possibly partner on this. I will be meeting with him tomorrow. He is an experienced investor. I'm nervous he may talk over my head.
What are my options here?
Asking price = $45K
Contract price = $36K
Repairs = guesstimating ~$15K
2008 tax appraisal = $112,835.00
Realtor CMAs (sold) for the area = $163K (average) with average DOMS = 49.
The area isn't the best in that schools are definitely graded poorly. The street/neighborhood looks OK I suppose but I wouldn't want to live there. This house (vacant) and 2 other houses (which are occupied) do nothing to make it look better. I suppose this is the typical ugly house. The house was built in 1951.
I was going to flip this to an investor for a finders fee (i.e. $2K-$5K), but I have another investor who want's to possibly partner on this. I will be meeting with him tomorrow. He is an experienced investor. I'm nervous he may talk over my head.
What are my options here?
Location, Location, Location.... Investing 101....
That being said... U don't appear to have alot of "meat on this bone?" Do u have $15,000 to complete the repairs? If so, finish the work and ARV the property to an investor or lease opt or rent the property out with some positive cash flow???
If not, wait for an investor to come along and assign for a finder's fee of 2K - 5K.... May I ask what city is the property located? Thanks!
If you have locked up this deal...think creatively...Remember....it's about using OTHER PEOPLES' MONEY....perhaps you can get the Other investor to partner with you and come up with some or all of the REPAIR funds. You become partners. Either that or sell the deal to Him. Assign it. I'd go for the 5k though....the value seems to be there.
Sam
BUILD your knowledge base....it is your ARSENAL to wage war against disbelief and the negativity of the status quo. You need your weapons......It's your choice whether you carry them or not.
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Don't let EXCUSES be the nails that keep you INSIDE the box.
All I heard in your post were the negatives about the property. There must be positive features as well. If you can't find the positive, how are you going to get anyone else to?
It sounds like you have quite a bit of equity in the property. If you don't feel 100% confident in dealing with this property because of the area etc. maybe you should just wholesale it and move on to the next one.
But keep in mind, there is a buyer for every home and a tenant for every rental. Just because you wouldn't want to live there doesn't mean someone else wouldn't.
Have confidence in yourself and remember what attracted you to this property to begin with.
CTP
Asking price = $45K
Contract price = $36K
Repairs = guesstimating ~$15K
2008 tax appraisal = $112,835.00
Realtor CMAs (sold) for the area = $163K (average) with average DOMS = 49.
The area isn't the best in that schools are definitely graded poorly. The street/neighborhood looks OK I suppose but I wouldn't want to live there. This house (vacant) and 2 other houses (which are occupied) do nothing to make it look better. I suppose this is the typical ugly house. The house was built in 1951.
I was going to flip this to an investor for a finders fee (i.e. $2K-$5K), but I have another investor who want's to possibly partner on this. I will be meeting with him tomorrow. He is an experienced investor. I'm nervous he may talk over my head.
What are my options here?
Location, Location, Location.... Investing 101....
That being said... U don't appear to have alot of "meat on this bone?" Do u have $15,000 to complete the repairs? If so, finish the work and ARV the property to an investor or lease opt or rent the property out with some positive cash flow???
If not, wait for an investor to come along and assign for a finder's fee of 2K - 5K.... May I ask what city is the property located? Thanks!
It sounds like my "advice" was quite "positive?" Hmmmmmmmmmmmmmmmmmmmmm