Offline3 Br 2 Ba brick 2300 sq ft, built in 1944, sits on three city lots in Mt Pleasant TX close to town, stores and schools, appraisal value is around 78,500. I have a tenant buyer on hand that got to view the property with me and they liked it. House has been empty for a year now and was previously on the market before and did not sell. I think an investor owns it now as the current owner has never seen the property since it was bought and wants to sell. Needs some work since it has no central heat or air so would have to have this installed, maybe new carpet and wiring for the central heat and air but would come below the appraised value. Asking price is 47,500 and I am going to offer 30,000 since the house has been empty so long and see what I come up with. FMV for that area is around 55,000 plus and my tenant buyer said he would take over the painting and the carpet on his part and fix the house the way they like it. Will keep every one posted I will be putting in my offer tomorrow with the agent and see what comes out. This could be my first real deal since I bought Dean's books almost a year ago and then his new one recently.
ba3000
Sweet. Sounds good. How much is your buyer willing to pay for the house? Keep us posted. I would like to know what comes of it. I am going to look t 2 Reos and 2 homes in a shortsales situation tomorrow morn.. I know I will be putting offers in on all 4 of these homes. I am just making offers at this point. Put a offer in another shortsale a few days ago. Waiting to see what happens.But back to you. MAKE THAT OFFER!!! And keep on making them. Good things will happen.
I got my mind made up.....
www.Kingjussinvestors.com
www.jussinvestors.com (buyers site)
Seeing how I know the person real well we agreed to 5,000 more than the selling price of the property and then a positive cash flow of 150. a month in my pocket after mortgage and other expenses then the property is to be paid off in 5 to 7 years when he has a better credit rating to get the money from a bank and I know of some one in the area that helps with credit repair also. I could of been greedy but I have been looking for some time for a property for this person and this one they liked the most and with a little elbow grease a lot can be done with this property and I want to make it a win win situation for both sides like Dean has mentioned in his books.
I put in an offer on the property of 30,000 and had my agent also ask about doing owner financing. Today my agent called me back and the seller wanted to know how much of a down payment would I be interested in not saying if he had accepted my offer or was going to do owner financing so now I am waiting to hear back from my agent in next couple days if my down payment offer was accepted if the owner wants to do owner financing on the property. Now its starting to get exciting since all the other offers I have put in were all turned down.
Ba3000
Isn't is crazy what can happen if you just ask. We are looking forward to hearing how this all shakes out! Best of luck to you and keep us all posted!!!
Chip & Andrea Weule
AC Investment Group, Inc.
Got a call back from my agent earlier after posting my last comment. The owner came back with 5000 down, 37500. 7500 more than what I offered so I went back with 35000, 5000 down, closing to be paid by the seller so now I am waiting to hear back from the seller and should know more about this in the next day. Even with 5000 down it would take me about 16 months to bring this back in as cash flow from the property from the tenant buyer I already have in place. I should come out as a cash flow around 200 a month for 5 yrs and then what we agree to be paid off at the end of the five yrs. No doubt out of this after five years I should come out with 10,000 from the selling price. So over all not bad for my first possible real deal.
ba3000
The seller came back with 5 year financing available only, 6% interest a month and then a balloon payment after five years. Did not say how much the balloon would be will have to ask about this but I am thinking he wants the 35000 we agreed upon minus the 5000 down payment so it would be 30,000. No I am not going for this will have to see what I can come up with as with these terms I cannot make anything on the deal. Will be talking with a bank tomorrow about the financing and see what comes out. I just might have to let this one go seeing how my buyer can only afford a certain amount a month on payments and this would go over it. If any one has some good ideas feel free to let me know.
Ba
I am letting the deal go as the owner will due owner financing but for only 18 months then wants a balloon payment made for the rest. Monthly payments are based on a 5 year contract but to be paid in 18 months time. I am working with a bank to finance but the current seller does not want to wait til this financing to go through keeps saying I have other buyers and then they are offering more of a down payment as well. So if he cannot wait for the financing with some one else I am letting this one go and move on to the next one. Cannot waste too much time on one deal as there are others out there to be made so on it goes to the next one.
Ba
If he is a out of town investor he might be pushing you to get the deal closed. And as far as you AC. make sure you have a box that will carry it. A lot of your older homes are a 100 amp service and the old screw in fuss box. They will not take center Heat and air without a full up grade. Also beware of lead and asbestos. KEEP US POSTED on how it turns out.
Randy
www.adeptpropertiesllc.com
Am not too much worried about the AC unit Randy as my tenant buyer would take this in his hands as for getting it installed and such so that I no longer worry about. As for the circuit breaker it has the new switch kind and not the old with the old screw breakers in it. I just think the seller is being a little pushy and maybe trying to bluff me as well if he cannot wait for the financing to get approved so by doing is this way I would not have to worry about it down the road because if I wait that 18 months and try a refi and have problems the he keeps the house and the money paid by the month. All the paperwork has been sent to my bank where I have no problems with financing but they do not do things in two days either so will wait and see what comes out and work on my next deal. I am not going to give up just yet, I am getting all this learning experience now for my next deal. Thanks for the comment Randy.
ba
I found this property on cl yesterday and have contacted the person trying to sell it which is also an investor. It is a 4 Br 2.5 Ba brick home, 2 car detached garage, built in 77, 2200 sq ft living, 9600 sq ft lot, needs about 5k in work like painting and carpet in the rooms that have carpet and refinish the hardwood flooring. The property is in the houston area and I am selling it for 100k with a fmv of 144k so there is lots of room on this one so if there is any one interest on this one just pm me.
Shawn
Well this has turned out to be my first deal, I am trying to sell the above mentioned property for sure now so hopefully all will turn out good with this one and see if I can get started. I cannot believe it at all that I finally am working on my first one after such a long time but it all just takes time though.