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WHEN DO YOU LET A POSSIBLE GOOD DEAL GO????

September 1st, 2009 | posted by phoenx777

WHEN DO YOU LET A POSSIBLE GOOD DEAL GO????
I worked on a pre-foreclosure for over a month. Babysitting the sellers. (Whatever it takes to get the deal done, right?) Met with them at least four times for several hours. Initially, it looked (thru court records) that the sellers needed a total of $167,000 to pay off mortgage, a POA lien and $7,000 to them for equity. Great deal considering that the property in "todays" FMV was averaged at $181,500. (Just last year this exact models' FMV was closer to $210,000) equaling approx. $14,000 instant equity in current market.

Question...would this be a good enough profit margin for most investors to bite? (I got the deal before I had investors. Still having a problem building investor's list. Any advice or websites would be appreciated!)

What is slamming the door shut on this deal is that the sellers just want $7,000 ASAP and I don't have it! I have NC mountain property accessed by the county at $10,000 that I was willing to use for a secured promissary note, but can't find a lender.

Initially, I was planning to assign, but when can't find investor, was considering buying myself for my two teenage boys. We've never had a home to call our own. But still need the $7,000 to assume mortgage.

Just wanted to share my first "deal" experience with the DG family. A little discouraged after spending so much time on this one deal. (Iwas determined to make it work) but I know "you win some, you lose some" and just go on to the next....

Any thoughts out there as to what I could have done differently? The door closes for good today. The sellers needed an definitive answer yesterday. Please share any thoughts or ideas!

Thanks DG family!
Phoenx

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On 17:13pm, September 1st, 2009 alchristmann said:

assigning?

alchristmann's picture

If you would want to assign this property to another investor, they would probably want to get it at 70% of value or less. They would not want to pay more than $127K. You would still need to reduce your purchase price to give you a profit.

Al

On 16:34pm, September 3rd, 2009 phoenx777 said:

Assigning? Al...

phoenx777's picture

Thanks for the response. To your knowledge or anyone reading this....Are there very many 70% of value or less out there? I mean I know my market (town) very well and there are some great deals out there, but that is extremely deep. I've spent a lot of time (about 1 1/2 years) researching and trying to use this program, but starting to wonder if it can be done. I hate to sound pessimistic, however, I have two teenage boys to support on my own and nothing has come to fruition as of yet. I'm questioning whether this can be done and/or if I need to move on to something that will produce an income. I haven't given up yet...but no food in the house and times are tough. Frustrated!

Al, if you don't mind me asking...what have you done exactly to produce an income? I need some positive reinforcement or advice.

Thanks much to all!

On 17:31pm, September 3rd, 2009 alchristmann said:

phoenix777

alchristmann's picture

I suggest that you talk to some investors in your area that you plan to assign to. Find out what they are looking for. If you have a buyer that wants properties with cash flow instead of equity, then you can adjust your offers to create the cash flow that your buyer is looking for. If you can find buyers that just want a place to live in, you can probably find a property that is not so heavily discounted. Know what your buyers want, then find it for them. If you can do this, you will be successful.

Wish you success, Al

On 23:27pm, December 24th, 2010 Nvstr said:

I want to join forces with other investors

Nvstr's picture

I'm a successful real estate investor in Arkansas. I'm interested in joining forces with other real estate investors who may be having difficulty getting started. I have a succesful program which I am able to pick up propeties with little to no money down. I do not have to use my credit. I'm interested in teaching other investors in other areas so we can prosper together. You can visit my web site at www.nwapi.com to get an idea of what I am doing. Please contact me if you are interested. I want to pick up 100 properties in 2011. Who wants to join me?