What would you do?

Check comps, contact sellers and see what the motivations are, fill out your leads sheet with all the info on the seller, and the property, (tax amount, back taxes, does it have a clear and marketable title, any leins on the the home etc. mortgage info. make sure its current, if its in foreclosure process, payment, whats owed,.

Main thing is why selling.

After you have the info you need make the appointment with the seller.

Go look at it and look for major issues that you may not have been told about (missing copper, heating and/or a/c units, roof leak, foundations issues etc.)

If you are comfortable with the house, make a cash offer and get it accepted and get the contract signed before you leave. Send contract and escrow funds to your attorney or title company.

Market to other investors in your area as a wholesaler, find investor, and sell property for more than what you paid for it (sell the contract for a fee-legally) get paid and sign assignment contract, fax assignment contract to title company. Done.

You can either get paid your assignment fee all up front (preferred) or take a non refundable deposit from your buyers and get whats owed to you at closing with check or wire transfer. You should go to the first couple of closings so you know the deal and build report with the industry individuals. After you have done some deals you can give Power of Attorney to your attorney and they can close for you while you are in the Bahamas!

Next.

Another thing to note is not to publicly post the potential deal you have. If that craigslist ad was clicked by the wrong person and it was a great deal (its flagged now), they can still snatch it and you could have gotten screwed. Just a tip.

Other than that Bernard posted some good info.

Yeah, it may not be wise to post a link to the website where the deal is. You could use fake cities and town, when talking about deals, too. Main thing tho, is getting the comps for similar properties, and crunching the numbers to see if it's a go and what type of strategy to use to get the property.

I was pretty sure that I wasn't going to make a move on that deal. But, of course you are right on me watching what I put out there. Thanks guys.

If the numbers were right and if it didn't need a whole lot of work,an investor would have grabbed that right up.

Look at the numbers you posted, ROI minus taxes and repair your looking at 100% return in less than 14 months.

I would have jumped on it at first look. But my question is if the rents are that high why is it being sold so cheap. And why wouldn't the owner just repair and rent it out. There has to be more to this story.

It was a little fishy. I tried contacting him numerous times by phone and email. He sent me pictures of 3 other homes that he had for sale. I wrote him back again inquiring some info on the property, but never received anything.

If he has other properties for sale the guy is most likely an old landlord looking to get out and just selling his rentals for cheap to get rid of them fast. Looking to make some fast cash don't you think? Max you could be on to something here. What do you think Jim?

looking at MLS properties with my agent today and came across a FSBO that just had tiny signs in the window. I went to look in the window and the neighbor came out and said that the owner of the house was relocated due to his job and will not be returning and wants to get rid of the house but doesn't want to pay any commission to an agent. I gave the neighbor my card and he is going to contact the seller tonight since I work 3rd shift now. I have the sellers number and will be calling them tomorrow. The house needs major repair but the comps for the area are in the $134,000 range. This house is a DUMP in a nice neighborhood. I am on to something Jim!

Congrats Lane, I think you are. I hope it works out!!

That sounds like a winner, depending on what he wants for it.

Escalating property taxes

Think about this one very clearly. You're in the NYC area so i'm sure you know Gov Christie is cutting everything and tax breaks on property taxes and property tax increases are probably next.

$14k not including repairs is not a good spread. Offer $18.5k with a 30 day close. If they don't bite, trust me move on.

Before anything drive around the nabe at night,....midnight or later. Thats when you truly see the personality of an area. During the day its birds chirping, etc. Cameflogue.

Good luck to you

Thanks Elix, I let that deal go the next day. I was just curious about the situation. For my first deal, which I plan to do in May, I'm going to concentrate on a REO to buy and rent out. Just trying to figure out where?? Possibly Philly/Allentown area, Ohio, or Charlotte
area. If anyone out there has any good ideas for a home in a high rental area, let me know.

Thanks,
Mike

Max, you live in REI goldmine of Queens

Look in Queens Village(Jamaica/99th ave-116th ave area), Springfield Gardens, and even Jamaica,(along Sutphin Ave)

Canvassing is the best way to find properties and trust me you'll find a ton. If you have the time early in the morning on the weekends is the best time.

Good luck and trust me you'll find something earlier than May

May is when I should have cash. I don't have the credit or funds to start off in NY. Believe me, I wish I did. I was born and raised in Queens village, and it is full of oppurtunities for $$. I will definitely continue to look around the neighborhood for deals. Even the good deals in Queens are expensive. I'm reading Dean's book again to try to soak up everything so I could make that first deal. I could taste it!!!!