OfflineI am considering a house in a town right near me. On the MLS off and on for years. Price way down now. The owner has said no to owner financing.
Are there any other creative suggestions you guys can come up with?
As far as I know there is no mortgage but I should find our more tomorrow.
This house is listed for $32,000 and has an ARV of $150-175,000.
Figuring high on the repairs and low on the ARV I come up with gross profit of $58,000. Not bad.
Any thoughts are apprciated.
Lauri
__________________
" The only difference between me and successful people is they started before me."
by Shane
My first suggestion would be to come up with an actual, accurate ARV. You can not have a $25,000 spread on your ARV. Get it by researching sold comps in the last 90 days. Comps that are currently listed and ones that are currently under contract. This will tell you what comps are actually selling for, how long they are on the market and how many are for sale in your area. Never go by some website estimate!
Next question you must find the answer for. Why has this property not sold already. If the deal was as solid as the numbers you list and it has been in the MLS, most likely it would have sold already.
Last suggestion. get a true and accurate repair estimate from a licensed contractor.
Now you will have real numbers supported by facts. Then you will KNOW what to offer. True ARV minus repairs minus whatever your exit strategy is equals your offer. Make your Offer!!
Good luck,
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
I believe the reason it hasn't sold is this. A two bedroom aprtment was added on to an existing house. Side by side. Because of the slope of the land the addition was placed above a garage. The garage was not existing. They just poured a concrete pad, put up a block wall and put on the addtition. That part needs to be redone. It needs to be re supported. The building itself is in pretty good shape. Carpet, paint, kitchen and bath upgrades. I am guessing that so far it was not something that anyone wanted to take on, especially in a declining market. I will be meeting with the contractor this week.
We'll see.
" The only difference between me and successful people is they started before me."
by Shane
Depending on your location, that addition could really be a can of worms & that's why nobody has purchased the house in a year. Here if there has been work done without permits & you buy the house, the county will have you get "after the fact" permits, which are 3X's more in cost, & then the building must pass today's building codes(not when it was put up). If you don't
comply they can fine you so much per day(after a 30 day grace period to bring it up to code). Our county fines $ 150.00 per day after the 30 days & it must pass all inspections. In some cases you're better off demolishing the addition, but you may need a demolition permit also.