2 Bedroom 1 Bath / Double lot

Listing is for 399k and he'll take 299k??? 100k less??? Is he listed with an agent listed??? Something doesn't sound right, but this is perfect for you to start with and only fuels my argument that its better to have a deal before you get a buyers list; anyone can have 'buyers', but you don't always get a home to sell to them, so in essence your list is useless

Talk to him and ask him, if its not listed with an agent, that you'd like to assign it. If it is with an agent, by de facto, you have to speak with them and tell him of your intentions. As i've said before, if it seems like you're going behind his/her back, they will normally try and dead the deal.

You not having money can easily translate into "he has no money and has no one that right now can buy the house. Why have it tied up when we can always get someone who's serious???" Unless you can come up with a good rebuttal, you can kiss that house goodbye if the owner brings it up.

Speak to both of them, show them how it benefits both of them, but definitely get in the agents ear; Let them know you have buyers on tap, and that it makes his job easier to close and close faster and that you'd like to keep a relationship going 'if and when' this deal goes through(use those words. trust)

Once you have the deal locked up, advertise it and watch the buyers flock to it like mice to cheese.

Maybe I typed it wrong... goes to show I am newbie... but the listed price with his realtor is 39,900.00 but he personally told me that if I offered 29,900.00 then he would accept. So in essence it would be 10k less and I already know he owes nothing on the house, no mortgage or nothing.

So what you mean as Assign it you mean that I get it locked in and then add a small fee to the price and then sell that to the 'new' buyer and then basically walk away right?

Kevin

i agree with Elix about the buyers list. i have worked and worked on my buyers list, with a little success, but i feel i need a deal first. most everyone tells you to build that buyers list first, but it is useless unless you have deals for them. i have done it, but now i have nothing to send to them just yet. i think you might be thinking in New York #'s, Elix. i took the numbers to be $39,900.00, etc. and i think that is probably right for Dayton, OH. i know those would be the #'s here in Fort Wayne too. our sales prices are low, but the rentals are consistent and pretty decent. i'm also getting the impression that most people go for the deals first, and do all the foundation work as they go. i've done the opposite and while they are getting deals, i'm building my foundation. not sure i have gone about it the right way. nothing wrong with a strong foundation, but i think i need to be going after those deals too. i love it when people just bite the bullet and do it, and do what they need to as they go along. Keep after it, Kevin!

Kevin, I also like to Googl the address just to see if it pops up on another home website. Have you looked at the property?

Bruce

If he's taking off $10k, add $5k fee for yourself, but don't go under $3500

Bruce,

I have googled it and it comes up on a few other sites. The only view I have had of it so far is that of the pictures on the realtors website and 2 other sites it is showing up on. I do have plans to do a drive by of a few homes this weekend to have a look see, this one included.

elixbrown and Linda,

Thanks for the advice and encouragement.. it helps knowing that their are others out there there are willing to make a comment to further someone else and pass along advice.

Kevin

If you can't get financing this could make a good assignment, or maybe the owner will do seller financing? I would look into that!

sounds like a good deal here if you check the house out and find there is nothing major wrong.if i had this opportunity i would as chris said look into owner financing.ask the owner if he really wants to unload this property NOW you will work out a win/win/win for you,the owner AND the renter.also it can be a sale for the listing agent.
if the owner owes nothing on it then that is even more ammo for u.
this is what i would say in a telephone call ......mr seller if you could seller finance this property to me now on a land contract i will take care of your tennants and provide you with a monthly income.
try to find out what the renters intentions are do they want to rent or would they be interested in owning this home if you bought it? then i would find out if and how much they had for a down payment and how much they can pay per mnth.
you want to try to get it owner financed so u can in turn sub lease or sandwich lease option to the renter.i know this may be confusing to some newbies but it is really simple after u do 1 or 2.

example: you pay the owner 1000 down 300 per mnth u in turn sub lease option to the renter already in there for 3000 down 600 per mnth u buy from owner for 29900.00 and sell on lease option for 49900.00 you just have to make sure all the # work for you providing he will owner finance.
this is what greg murphy does i believe similar and i have done a few like this not as many as greg but i know it works. you r making some # on the down pymnt,, making $ per mnth and u make the difference between what u pay-ex:29900 and 49900= $ 20,000 read up on gregs deals to learn more if needed.
hope i didnt confuse keep taking action and u will close the deal one way or another and keep asking these wonderful dgers for advice and you will be set !!!!
jay

GEEZ KEVIN I JUST noticed you said double lot?? another opportunity to seperate or not to sell for income !! i had exactly one of these deals for my first check out my journal !! this could be your 1st 2nd and third deal all in one !!!!
jay

Awsome feedback there... and that is why I am so glad I decided to get on this site and post a message!!

I spoke to the owner and he isn't interested in doing a seller financing because he wants to be done with this property. I only know this because his renters approached him about doing a owner financing / Land Contract and he wasn't interested.

So what I guess I want to do is an assignment right? And I need to find a buyer... Anyone up to making some money and helping me get my very 1st!!!

Honestly I'd consider talking with anyone on any offers, I mean someone is going to get a good rental income, make some long term money and help me out by breaking the ice!

Hoping to hear from someone before I start advertising it on CL.

Kevin

Great Job Kevin! 1st things first...LOCK IT UP on Contract. Then you can approach anyone, even the renters. A $36,000 property can be purchased for very little money. Even with poor credit their payment would be at or below Rent in most cases. Hopefully they could afford $250 per month. If so, you could help them by contacting a loan agent and getting them approved. Also, see what the closing costs would be, maybe the owner will cover them if you offer a few thousand more. The owner is free and clear which makes it possible to get creative. Good Luck.

Greg

Greg,

Thanks for the advice. I didnt think about having him pay closing and offering 33k for it instead of 29k. That would keep the money in my pocket which is definately what I want .

The only drawback so far that I can think of is the renters are unable to secure their loan which is why they aren't the ones buying it... but if I was capable then I think that is who I would sell to, the ones that are in it now.

For now I am going to prepare and make certain that I have a plan in place and see what falls in my lap.

Kevin

Kevin, How is the market in Dayton? Are there any projects, short or long term, happening for the city that is bringing in the jobs? Also, is there a downtown area that the rest of the city can feed off of?

Bruce

Bruce,

Dayton is a rather large city (Ranked 6th in Ohio) and there is a downtown that the rest of the city is feeding off of but we have had ALOT of large companies leave (NCR, GM, Etc). However, with the Wright Patt AFB here (and they are expanding) and there is talk of 3 other very large corporations coming here I think we will be growing a bit more over the next 5 years. We were at one time ranked one of the largest with unemployment rates for the entire US.

Real Estate is on the rise here now and rental income is in the lead from what I can tell, alot of people are downsizing and returning to renting because of the uncertainity so I believe their is quite a bit of money to be made here due to all of this.

I hope that answers your questions, but if not just tell me what I missed and Ill be glad to do some research to answer your questions.

Kevin

Kevin,
Thanks. That's great info for YOURSELF to build your RE investments. What you described about Dayton, I believe all the pieces are in place. Yes I remember seeing alot of property on the auction sites in Dayton.
I also have a town near me, Joliet, with good infrastructure, good downtown area, minor league baseball team, commuter train that runs to Chicago, interstate runs thru it, gambling boats, historical homes, county facilities, but it seems no one has a lot of confidence in it. An intermodel hub is also in the process of being developed south of the city, which I heard is to be the largest in the US.
I believe that this is what RE investing is all about. Revitalizing not just a property, but an entire area that can contribute to the economy of that town.
Great success to you and maybe I'll someday invest in a property in Dayton. So far I've invested in IL, Indy and Mich.

Bruce

Bruce,

Sounds Awsome! I want to invest in EVERY state.. well the lower 48 but that is a very long term goal and maybe not real realistic but one never knows! If you do ever come to investing in Ohio, let me know, I'll birddog for ya! For anyone really... as long as I learn something then thats all that really matters.

Kevin

Sounds like a guaranteed investment. I would make the offer like you said, 33K and seller to pay closing. Then I would use my broker to see if I qualified to get the loan, since it is a small loan. It would give you positive income right now and an asset under your belt. Then I would try to work out a lease option with the current renters.

If I couldn't get the loan, I would lock up the property at the 30K price. Then I would do an assignment or perhaps an auction on the house and only one lot (keeping the extra lot or selling it separately). According to DG's new book, auctions usually bring better than 90% of value. You can always have a reserve at the auction (if you want at least 3000, then don't sell for less than 33K at the auction). You might get 37K, and make out really well. Some investor would probaly buy the property and be tickled to keep the current renters. Long term renters are a rarity. Plus, you still have a lot to sell, rent or build on.

Just my ideas. I also am still getting my stuff going, but I paid a little extra to get the book on audio and downloaded it to my computer and my MP3. I listen to the book on tape while I drive or at home as background. Each time I hear a section, I pick up something new. Also, just my thinking.

Good Luck! I hope to find one of these deals soon.