OfflineOK I am still working towards my first deal and have stepped up my efforts with offers and bandit signs. I received a call today from a woman that wants to sell her home for what she owes on it. First it is in a great part of town with great schools and homes are selling. My question is this--- the home was just appraised at $255k,her pay off is $225k She said that it has a new roof, furnace & hot water tank. The taxes are current. It does need new countertops and carpet but she doesn't have the money to do it. She just wants out. The values on zillow $273k Epraisal $216k & on realtor $263k. I don't think an investor would see enough equity in the property but am I wrong? I would like to make at least 5k from the deal and help her out but I am worried that I won't find a cash buyer that see this as a good opportunity. What insight can you my fellow DG'ers provide a newby?
opportunity or not an opportunity is the questions?
Posted on: Mon, 12/05/2011 - 14:15
opportunity or not an opportunity is the questions?
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- by Cinci Investor
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trust your gut here. you pretty nuch answered the question yourself.
If it needs new counters, my experience tells me it needs more than counters! and don't forget to add in closing costs, holding costas and rehab cost and your fee. 25k is not enough space. Are you trying to wholesale? If so follow the recipe in Dean's lastest book.
also another question to find out is what rents would you get out of it.
I am for from the best at this but I say there is not enough room. But keep hunting!!
"Don't tell me I can't, Tell me how I can."
This may be a possible lease option opportunity. Check rental rates in the area .if you can make a couple hundred monthly positive cash flow and also get an option /down payment from a tenant buyer than you got a deal. Or get the option down and assign the contract to the tenant buyer if there is not enough spread for a positive cash flow monthly.
John and Julie Wakefield
JCW Properties, LLC
If she doesn't need the payoff now, this would be the way to go!
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
for a Lease Option...
if you don't know how to set it up, ask another investor, who is experienced with lease options, to help you and split the fee with him.
Wishing you success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
good for L/O or sub-to---go look/inspect it-be sure to use your forms
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools