Help

1. call a realtor in central TX for comps

2. assignment should be no different- get it under contract and assign to buyer, even though I don't see any room for profit here

3.short term owner finance with balloon or L/O at less than $185k ($150k)

My questions are:
An 18 month old home needs what repairs at what cost?

How is the seller coming up with the ARV?

Have you researched the property records at the city/county?

It does not sound like a very good deal to me

Keep us posted

If this property is indeed a property that is owned free and clear you can offer far less than the asking price.

Remember one this "Deals are made not found". When you look at the face value of this transaction it may not look like it has opportunity. However, if you offer less and get the property at say 55% of the value this is a killer deal. They get cash quickly without competing against the foreclosures in the market and you get a great deal.

I'd shoot for Mike's #3 option. But start at a lower price so you go no higher than $150K when negotiating. Do you at least have money for closing and for a couple monthly payments?

Thanks for the suggestion. As Nate mentioned, I can see the potential.

It's just I'm not from the area; hence, I do no have any idea what's the worth of the property. I'll give it a try if I can find anything through county record. According to owner, the appraisal value is $214,000 and no need for repair.

Now is the problem, I do no have cash. Therefore, I only can either go lease option or wholesale it.

Thanks,
Kathy

Do you have active buyers in the area? Getting a property under contract is only 1/2 a deal. You have to be able to sell it. What is your exit strategy #1?
What is your exit strategy #2? Can you actually do it? How are you planning on finding your buyer?

AS far as what the owner says, they will always give the absolute highest possible value. They are usually way off. Do your due diligence and find out what the house will actually sell for in today's market. Most owners say their house needs no work but they almost always need something. More due diligence on your part. Then you will know what to offer.

You are taking action and that is great, you are on your way to learning this business in the real world!!

Michael Mangham
MD Home Acquisitions LLC

Thanks Michael. I have potential least option buyers in the area, but since it's free an clear. I would think wholesale would be better for me. On the other hand, as I Google and search on internet more, finally I found this porperty in fact is in an area that have tons of new contruction going on.

The similar houses around there sold around $200K. In this sense, perhpas, lease option would be a better choice. Please let me know is this what usually would one will go for.

In this case, how do I structure this? I never done lease option before.
Can any of you show me an example?

Thanks,
Kathy