OfflineHey I found some houses yesterday evening that are abandon. I came back home and looked the houses up on the tax roll. All houses have great tax assesments. I got the nubers and called the owners off the houses. One of the owners is a investment group out of Texas that brought a house up here in Stone Mountain Ga. I got in conmtact with them andthey are willing to sell their house. First, he said the lowest he would take is 30,000 and told him the number and ask if he would take 20,000 so that I could wholesale it easy for 26 or 27 clearing 25,000. He said that the lowest he would take is 25,000 which still is a deal in itself! After going back and forth for a while now today he agreed that he woul put it under contract with me for 20,000 if we split the profit done the middle! Which to me is alright because this will be another deal for me and possibly one that I actually close on so I'm not trying to be greedy and as well as set up a relationship with them in Texas because as we all kknow in this game you never know. He could be a potentail buyer in the near future! Here is the deal!
It's a 3/2, 1428 sq feet, tax has it assest at 86,200, it's a brick front nice surrounding on a major highway walking distance from the store and minutes from the highway! House next door was built only a few years ago! Zillow has it assest a 119,500 and total view has it at 90,000 and says that it tax assestment is 93,200. So is this a good deal or what should I do! I going to send it down my buyers list first before posting it on other sites. Need 20,000 to 25,000 in rehab asking price is 35,000 and negotiable! feedback please!
Advice on this Deal! PLease!
Posted on: Thu, 01/20/2011 - 20:21
Advice on this Deal! PLease!
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- by Silkyslimk
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Buy at $27.5k, try and sell at $50k so you leave the buyer with a decent spread
just for fun. Look up the property on the county website and see what they bought it for. Your deal may me a good one but it depends on a few numbers.
Also, the tax assessment at 86, zillow at 120 and totalview at 90 may be in error. This number has to be researched to be validated. Also, the rehab needed has to be determined also.
But once these numbers are known, it is possible that you may have a deal in the works. Get the numbers above and I'll give you a more precise opinion.
Send me a PM with the number information and since it is in my territorial area, I may enter into a deal with you on them if the parameters are right. I will protect your interest by offering a non-compete as there is too much property out there that I don't need to steal anything from another investor.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
are so skewed most times
I'm sure you can shave 1/4 off that if you really, really,........really wanted to.
1. Go with contractors to pick up materials; they tend to add on materials for themselves at times and 99% of the time you'd never know it. This saves you ALOT. Do it the first or second time you work with someone, but once you have their trust you may have to take their word
2. Go shopping and price check materials beforehand; if you need plywood or hardwood florrs, go and look at brands and which ones you prefer to be used before you go with him or let him do it himself so you already have an estimate already. letting them know you did your homework also keeps them on their toes
Hope it helps
Trustpoint has good advice. Check every deal out and take nothing for granted. Zillow and the other on-line services and even the county assessor have different parameters for valuing properties. The best valuation process is to get comparable sales reports from your real estate agent about three bedroom, two bath, fifteen hundred square feet brick front properties that have actually sold in that neighborhood. Average those sales prices on similar properties to determine the Fair Market Value. Once you have FMV, subtract all the costs an investor or buyer would have such as closing costs, rehab costs, holding costs, sales costs and the investors profit. From that figure subtract what you want to make and that will determine your offer amount. You must get it bought right to make money. You also must leave enough profit on the table for then next buyer to be willing to buy it from you. Good luck.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I'm sure you can shave 1/4 off that if you really, really,........really wanted to.
1. Go with contractors to pick up materials; they tend to add on materials for themselves at times and 99% of the time you'd never know it. This saves you ALOT. Do it the first or second time you work with someone, but once you have their trust you may have to take their word
2. Go shopping and price check materials beforehand; if you need plywood or hardwood florrs, go and look at brands and which ones you prefer to be used before you go with him or let him do it himself so you already have an estimate already. letting them know you did your homework also keeps them on their toes
Hope it helps
Just a little information that many people doing rehab should know.
When you have a project that you are about to start if you make a list and go to Home Depot Pro-Desk tell them you want to sent up a bid package,now you have to spend $2500 in seven days but they discount all of what you get for that job. You keep going back and adding to your job and everything is drastically discounted, I've gone back and added tools that ended up free. So check this out on your next project.
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
But I'm trying to assign the contract over to and end buyer!
but how are you going to tell the end buyer what the estimated rehab costs are if you can't estimate them. If I buy it from you, I would need some estimated values to make sure the deal works for me. Of course, I am going to do my own estimation before I move forward, but I would need a reference point to see what is going on. The more information you have, the higher the probability that you can get the home sold.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Bill You won't just take my word on it and buy it from me.
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
Just buy from strangers believing their word. I know if we have cost overruns, the seller will refund our money to cover it.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
The neighbor house all three are work 184,000 and they are newly built houses builted back in 2005! I went and took picture of the outside but I couldn't get in do to boards! The deck was completely torn off and it looks like it is going to need a full rehab! Sheet rock hardwood appliance full overhaul!