OfflineI bought deans 2 latest books back in May. Lack of time, stress and fear were always my reasons for not taking action. It took me a while to realize that they were just excuses and that if I truly wanted to be successful, I would have to get over them all and do something about it. So i did. FINALLY! And it may be a small step but it's amazing how quickly things can work out. I was searching Craigslist a few nights ago when i decided to check out the real estate section. At the top of the page was an add that read "WAY BELOW MARKET VALUE". I thought is was too good to be true. After searching for months and finding properties and not taking action. I decided I wanted better. So I called the owner. He is very motivated. His post said $65,000. But on the phone he told me he just wanted to get rid of it and would sell it outright for $60,000. I still haven't made an offer. I have looked on Zillow.com ($96,000), Cyberhomes.com ($59,000), Eppraisal.com($63,000) and TotalView ($73,000). I spent an hour and 1/2 on Zillow looking at comps for that area. There were plenty. I took notes and can look at all 15 comps at once. But because of such a range of estimates I am unsure whether or not its worth it. My goal was $10,000 on my 1st deal. Should I lower my profit? Should I go wit my gut feeling and do it just to say I got my 1st deal done?? Or should I drop it all together and start over? I'm stuck. The house had a 25yr roof put on 2yrs ago. and they also added a family room. It's a 3bd/2ba, 1500sqft, 1 story house. Built on a corner lot in 1958 with a big yard, Huge carport and a shed.
ANY words of wisdom or advice would be helpful and appreciated.
Thanks
This site can be extremely informative
** KNOWLEDGE WITHOUT ACTION = FAILURE **
Dude...
How much does it need in repairs? Is it listed with a realtor or is it a FSBO?
If you plan on wholesailing this property then first find buyers, get their criteria and see if this property fits that criteria. You can find buyers by calling we buy homes ads... or at your local REIA..google it. Also make sure your buyer has either cash or hard money lined up...
Your offer should be 60-70 percent of the after repair value (depending on your area) plus your wholesale fee... so if this guy is selling the property at 60k and the market price is aroud 65k it does not sound like a good deal... Remember 90 percent of sellers are not that motivated they just say they are...(i'd offer 30k and see what he says just ball parking $5k in repairs and 5k as your wholesale fee)....
Action steps-
Try to get it under contract but MAKE SURE YOU put an addendum in there (something like subject to partner's approval or something along those lines THIS IS YOUR EXIT STRATEGY IF things go wrong) Also MAKE SURE you put and/or assigns after your name on the contract...
You need to find out how much repair is needed and also find buyers...
The only repairs it needs are carpet and paint. FMV of $65,000? Really? A smaller house around the corner just sold for $99,5000. There are also many other comps that are on smaller lots, or have less sqft or bathroos that are selling for $75,000 - $90,000. Now im confused.
Its a FBSO
I would say he is not that motivated if he only came down $5,000 from his original price on craigslist. His original price is to close to the comps in the area. I would say if he is actually motivated he will come down another $10,000. Just make sure your comps are actually correct.
I would also check and see if the house is in a good neighborhood. Like what Dean mentioned about finding the ugliest house in the best part of town, then you would have a diamond in the rough. If it is and all your ducks in a row, then I would go for it even if the profit would be $5000
My goal is to pick myself up and get on solid ground so that I can overcome any obstacle or FEAR! And that I can Help someone else to do the same http://www.realdealcommunity.com/members/profile/10706
The problem I keep running into is only being able to borrow the 70% of the
VALUE of the home. It seems that the FMV of a home really doesn't mean anything its the loan value.
Example
if a house is on the market for Fair Market Value of 100,000 the loan value is 70,000. But when appraized the value is only 70,000 which means the loan value is only 40,000. If i can only borrow 40,000 for the house where will my closing cost and repair cost come from? Has anyone found this type of problem and if so how did you get arround it?
I may be jumpin around a little. But all I've got are those books. the process makes perfect sense in my head and i really feel i can make it work. Maybe i started wrong. I bought a prepaid phone so I could have a professional voicemail for callers to leave a message. Flyers maybe? or business cards? How do those types of ads work for others?
Since the owner has already lowered there price call him back and talk to him and find out why he is wanting to sell. Without looking at the house it could need more repairs than the owners says. The owner must want to get rid of the house if he dropped the price without must effort. Since he is that willing, do your homework and see if the numbers work out for the property. they may be willing to take less just have to find the "magic button".
Looks like your making great progress! My opinion, I would meet in person. And view the property first hand. It is very hard to set a price without determining the repairs. So seeing the property and meetng the seller is very important. Continued success.........Lubertha
"GOD IS STILL IN CHARGE, HE IS THE AIR WE BREATHE"
the house is actually his fathers. he can no longer take care of himself and they just want to get rid of the house.