OfflineI was recently driving down secluded streets looking for homes that would be good candidates for investing in and found an empty home. It did have a real estate sign but also a sign on the window saying it was not for sale.
I think I have found one that fell through the cracks and has good potential for a wholesale. We have so many properties here, the agent had never even seen the place. I would like your opinion.
Details: In S. California. REO Listed $180,000 2bd 2 3/4 bath. FMV after repairs 280,000 for the two bedroom it is listed as (was 890,000 at the peak). The owners have so many projects going on (not to code) and so many repairs needed I won't try to list. Reparir estimate $100,000 to $125,000. (more than I can do) Beautiful property on a private drive. Nice neighborhood. Could be a high end property valued at $500,000 + If brought up to code and IF all repaires done.
After it is repaired, It would not be 2bd as listed, but a 3 bedroom plus a seperate 2bd 1ba granny flat. A 5+bd with 3 3/4 bath total! In this area, that is unheard of
What do I do with this find? Put in an offer of $100,000 or ? and wholesale it knowing I can walk away if I don't get a buyer in a couple of weeks?
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
You may have a good one here. Looks like you have been putting in some research time on it as well. If you have a buyer lined up then go for it - the worst thing they can say is NO....
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
This would be my first wholesale and first deal other than one rental I have so I am apprehensive but excited.
I will need to be certain that I can back out if I don't find a buyer. I've read about the contingencies such as "upon inspection". Exactly what do I need to do if I don't find a buyer? Do I need to provide the inspection report to the bank in order to back out? Or is it as easy as giving them a letter saying the repairs needed are not within the budget I had in mind. I think I could work within a two week timeframe which would make the bank aka owner happy.
Should I post a generalized add on Craigs List for the home now in order to "test the waters"? It isn't even listed for sale on Zillow or RedFin yet. But Zillow does list the original square footage and apparently the owner, at the time, listed the upgraded information.
Should I send to the bank with my offer a list of the low comps, my financial statement, the pictures of the repairs needed, with my lenders approval letter in order for them to accept my lowball offer?
Appreciate your input.
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
www.beaconinvestorsgroup.com