OfflineHello to All,
I just want to start off by saying thank you to each and every participant for all the helpful and very informative information that has been posted. I just recently bought Dean's book Profit From Real Estate Right Now. I am new to this site and possibly working with my first deal.
I have an owner that is on the edge of agreeing to sell his property for 410000, but this property is assessed by the city at 407000. He wanted 420000 because of lot size and location. I believe it could be a possible good assignment because it is in a R2 zone where there are lots of other infills going on. This location is great for developers because it is close to downtown. So based on the sale of properties in the area I believe I can do a quick sell to a developer for at least 420000. I am talking with a few developers tomorrow.
My question(s) is should I be offering 410000 for the property? Will it be better to do an assignment or an IEE with a developer?
Thank you to everyone in advance for your help.
Hunter
It is great you are getting started with real estate. What are the comps in the area? See what the other homes are selling for and let us know. There should be a great enough discount in the price where everyone will be happy. Let us know more details so we can help. If you can assign the property and make a quick 10k then that would be great!
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
Jeremy,
After taking a further look at the homes listed with similar sized lots and year, they are between 400000 and 406000. So I am definitely going to have to ask him for a lower price. There are homes that are going for much more in the area, but they aren't comparable because of year and renovations done. So basically, in order for everyone to be happy he would more than likely have to let it go to me for 395000 or 400000. So that I could get a buyer around the 400000 to 405000 area. I'm not sure that the seller will be happy with that so I may have to walk away from this one for now. Rookie mistake, but I am learning. The deal actually came from a friend that knew someone or I would't have stepped out there yet, because I am meeting with a lawyer and realator next week to officially kick things off. This just shows me I can do it! Not out of the the mix yet though, I am going to talk to some developers in the area and see what they are willing to pay for a property on that street or area (anonymously of course). Then I will go to the seller with a price that works for everyone. If its a price below 410000 and he is not willing I will walk away.
Thanks for your response and I look forward to sharing more with everyone on a closed deal in the very near future.
Hunter
Hi! Ok, so here's the deal. I'm in college at the moment, and I just got Dean's books a week or so ago. Super excited (and impatient), I launched into looking for deals, and I think I might have one. To avoid rambling forever, I'll try to be as informative as possible, and get straight to the point: I need help and / or advice--and a potential assignee wouldn't hurt, either.
Ok, here we go:
I found a house in Louisiana. It's a HUD home, with an asking price of 54,000. It's in pre-forclosure, and I'm in the process of getting ahold of the owner(s) to see what their situation is.
According to TotalView, the home is estimated to sell at between $75,961 and $186,928. The site estimates the sale price at $124,544.
Comparable homes sell for between 49 and 90k, with the average being in the 50s, and rent for an average of $944 a month.
What I'm trying to do, to be as plain as I can be, is to get my first deal out of the way. I want to prove to myself that this CAN be done... so what I'm looking for is an investor (or investors) that would be willing to pay 64k for the property--the 54k they ask + $10k for me.
This home has the potential to sell for double what you pay, or to act as a cashflow property (I personally would charge 1000 dollars a month).
One more thing: The home is located in a nice, tree-lined setting, with several schools close by.
If anyone is interested, shoot me a PM, and I'll reply as soon as class permits. Thanks!