NY Deal - Possibble First and Very Attractive - Need Help

Hey Tropical.
Actually the 'comps' are comparable properties that have sold recently that have as close to the same dimensions, etc. as the property you're offerig on.
What you have here for us to see is the Formula how you hope/anticipate that the deal will go through.
Do you have an exit strategy? 8 bedrooms? what type of property is this and are there any recent appraisals?
Here is how it has worked for me: once you have a signed contact, you can take that document directl to the title company and they begin the title search, insurance, etc., this is important. Two more considerations:
does your contract read(your name /and or assignees)? you'll need that to be able to sell the contract or "assign" it to another investor for a profit.
Also, I think your offer is fine, and lastly, as Dean always says, never go to a closing without asking the seller to pay closing. . .even if you have to up your offer to cover that amount because it is less money out of your pocket right now and that's always good. The tile company can give you an approximate amount.
hope this helps
Grady

Grady has given you some really good advice and tips. You may also want your real estate agent to pull comps within 6 months of homes that are similar and have sold in the local area. I found that sometimes a website such as zillow.com may not have the most recent and complete information you may desire to have a reasonable basis for your decision.

The more important thing is make sure you know your exit strategy and Plan B before committing to the deal. The "exit clauses or contingences" should be in place in case you find a material defect in the home, or the repairs appear to be greater than anticipated, or you can't committ another buyer if you are trying to assign the home. The high end homes will attract a special buyer that wants the home for a permanent residence, thus, your potential buyers may be slightly more limited.

On the flip side, if you run the numbers and have a few potential buyers in line, the profit can be more than worth the time and due diligence you spend on the deal. Good luck with this transaction and future deals. Believe and Achieve! - Joe

Thanks Grady and Joe for your input. My exit stratergies would be; available of fund, inspection outcome, overpriced renovation and may be other permit issues. The prop is a historical home. Legally, it is a 4bd but the previous owner may have turn it into 8 bd and rent it to college students. No recent appraisal as far as I know but according to the Assesors Office it was bought for 690k in 2006 and at one time it was valued at 1.3m. I want the prop to be our primary residence.

Thanks
Viliame

Hey, if you are going to buy the property as a primary residence, then maybe you can rent out some of the bedrooms to make up the loan payments. Maybe you can keep that in the back of your mind when you are doing your renovations.

Maulik

Great suggestion.

Thanks,
Viliame

could be another possible idea.

Sounds great...So are you going to try and get 100 financing through the bank, or do you have money for a down payment that you are using?

If it is an REO through the bank that you are talking with, they may work with you on certain things...Plus if you do have to renovate it, is the house considered "livable" That may also depend if you can get financing for it...

It seems like either way, if I understood correctly, it is going to take a lot of money to fix up the place...

will you be using the house as primary just till it is fixed up, or for a good period of time?

Have you seen the place yet, or waiting to see if offer gets excepted first?

Good luck with that...That sounds pretty exciting and cool...

Keep all of us posted on this, either way whether it works out or not!

I think for the bed and breakfast, you would have to get certain permits and things like that...but if you were to do that, that would be pretty cool...

Point considered. Marc, I have actually went to the property with my construction guy twice and he said a combination of cosmetic and structural work will be needed. The prop is old and it was treshed I undersatnd by students who used to live there. He still think we can make good if we do it right, thats why we offer 35% below asking price. We might need to fix it up and rent it for period of time and wait till the market is up again. We will consider this if we not able to find a buyer during the renovation period. But we are positive we will find something before the renovation is completed.

There are many positives of the property we thinks it out weigh its negative aspect.

Thanks,
Viliame

Glad to see things are looking bright for you as well my friend. I really hope this works for ya. If you need anything or help you have my email. Hope to meet you again soon and we can all go out to a tropical place when we become millionaires in RE. Keep us posted. Good luck.

Jeremy

Hey, lets work towards that may be I can teach how to do surf. Our first meeting really help us all in this endevour. We should organize another meet and check out any update from our members. Thanks again for your encouragement.

Cheersss!!!!
Viliame.

5 years from now, I can see Jeremy doing things most people wont do in a life time...Good luck man, and keep moving...You got it going on!

To answer one of your first questions I do think that an attorney would be a good idea in this case. First purchase, you could run into problems, doesn't hurt to ask a few questions.
Angela

DON'T FORGET about the $8K Tax Credit that you can even use towards your down payment as a first time home buyer! There are a few good threads about this, try this one:

http://www.deangraziosi.com/real-estate-forums/financing-and-credit/2212...

Angela

It would be a good idea to employ an attoney on the first deal so I can also get some networking going and gain fisrt hand experiance on it. Yes, I will certainly utilize that 8k.

Cheersss!!!!
Viliame

... that it might be a good idea to get a RE attorney in town, one who might have the best first hand knowledge of that particular area. I think I have one already, let me get recommendations from a couple of friends and I will contact you with the information.
Angela

If you are toying with 06 info about RE, Then you could maybe selling yourself short,Then again i trust you know what you are doing.06 was crazy and now a 800k property is 265k, add the rehab at 200k = 465k/Be very careful with HISTORIC homes,It is the only property the local GOV. can give you a hard time...Meaning do what they want.I do not know the area you are bidding on, But it does sound like a good/great deal...Make your luck!
I always think about DG when he said"I had my money tied up and i wanted to make another deal...I used other peoples money for getting contract or purchase of property.
It is not by word,But the meaning has REI written all over it!!!
Tropical thank-you for the info of you taking ACTION.

I am going with my guts here. The possibility is endless here. I know the land size is huge, would be good for families who like to host friends, location is also a major factor, it's only 20-30 minutes by train to NYC. Very close to major highways, colleges is within walking distances, very quiet at night (drove a couple of time). In other words LOCATION, LOCATION is what drove me to pursue this. I am counting on my partner (contractor) to give me the green light here and he did. Already when I jump into this all those theories I have learned from DG just came flooding to me and had been guiding me all along plus the help from the DG family.

We already going to look at another prop within the vacinity with simillar scenario this weekend incase the first one doesn't come through for some reason. Thanks to All!!!!

Cheerss!!!!
Viliame

Just so you know, the 8000 tax credit, hasn't been officially passed as far as using it for down payment...They were trying, but they haven't worked things out as far as that goes...I know sistreat posted that they have, but according to the lender that I am working with, it wasn't passed yet...And it may not at all...

Other than that, very smart to keep looking...Regardless whether this particular one works or not...Another property that you make things happen with is great...

And I think after the first deal, things will come together easier, and maybe quicker too...

Awesome job once again...I am rooting for ya on this one...

And location is def important...As long as you don't stop, and ya keep moving foreward, that is all that matters...

Very inspiring...

Saw two more prop today and the agent predict this little area we are concentrating on will be flooded with deals soon. All it takes is to drive around to notice, it is saddening for them good for us if we get some deals going. Talk to you soon Marc.

Cheerss!!!!
Viliame