Wow and help?

I say, lock it up on a contract with an acceptable inspection contingency. If you think the price is fair.

Foundation work can get pricey.

Lock it up and let him know you need some time to get your guys out there to look at the extent of the work.

Him being in town only a couple of days can work to your advantage. He wants to sell, he's motivated, get the contract.

I would go for it. What do you got to lose. Just make sure you put a contingency in there that lets you out. With the foundation and roof work, who knows what the inside is like.

I think he would understand that you need to make sure of the repairs needed.

I've had foundation work estimates over the phone. I sent a picture of the foundation to a company and he looked at and gave me an idea of the cost.

Be honest and upfront.

I bought a house from a guy same type of scenario. Only in town a couple days to either hire a realtor or sell the house. I told him I would buy it as is, saving him time and money. He took it, showed my buyer and closed 7 days later. Everyone happy.

I think you should go for it!

Agree with Dustin, but some questions, whats your exit strategy? Buy, fix and hold, or assign it to another investor? Make sure you have your contingencies in the contract, like your inspections. I would call a foundation company so you can get an estimate and number of piers. I believe Oklahoma and Arkansas are very similar. Price per pier runs between $450 to $600 per pier. It could get expensive depending on the number of piers needed to stabilize the foundation but you can add up this to your repair cost and maybe negotiate further down the seller's asking price. It really sounds like a nice cash flow property. Not sure why you would like to get an agent involved, the agent may not know whats he is looking for other than a commission if the sale happens.

Dustin & I are both from Arizona, too.

A rental proforma is one of the things you'll need, as it's vacant. I would start trying to find comps for the area, too. Not that rental values don't matter that much, it's the potential income that does. And if maybe a little foundation work / cosmetic repair needs done, you may have a good deal on your hands. And if you find the right contractor who gives you an estimate, he may even buy it from you if you get lucky.

Could you tell me what a rental proforma is?

i would like to lock it up and assign it? Can we do contracts via fax if he leaves before I do my due diligence?

Yes you can do contracts via fax or emails.

how much the apts can rent for right? A worksheet to gauge the rents possible? Thanks also Tom and Jeri for the clarification of doing contracts via fax or email.

Tammy,

you cannot rely on Zillow and Totalview to get an estimate of the property; you need to get true comps for the area within the last 90 days- get that info from your agent.
Also, you need a handyman on your team who can give you an estimate of the repairs.
If you are going to do an assignment, you do not need to get your agent involved. You will assign to another investor, not market the property on the MLS.

Wishing you success,
Valerie

I have never thrown cold water on a deal but, you have got to decide what you are going to do here. Buy and hold, assign, fix and flip. You have got to narrow it down and let us know. You are all over the spectrum here and following your posts this is not like you. It seems you have tasted blood here and you want the kill. Believe me and I say this from my heart, take a breathe and slow down. Tom and Jerri are right in telling you foundation work can get expensive, been there done that. If you are going to assign this deal and in order to keep your reputation on a high level, you would have to disclose this flaw. Figure which route you want to go after and then post them here. Your questions will be answered...Jan

Thank you. I didn't realize I was all over the place. I was just trying to figure out what to do. I did say I want to assign it, and I thought I had to know the repair values to make an educated offer. That was my thinking, but as you and my agent pointed out I need to forget about the foundation or I will have to disclose that. That said, my realtor now recommends I forget about this property as most of the neigborhood is abandoned and not likely to be many buyers. She also thinks it may be gang infested, so we will definitely not want to go to the neigborhood. Tammy

I called the owner of the duplex and told him I would have to pass on the duplex and the reason being that there were just too many abandoned buildings in the neighborhood and that I didn't think I could offer him anywhere near what he wanted. He is desperate and told me to name a number. I said I could not at this point as I had to find out more. He said he would allow me to look at the place and send the the lock box number when I am ready to look at it. I did not tell him I didn't want to go to the neighborhood. Another investor I spoke with this morning has shown some interest, so I told the owner that I would pass his information along to him and that if I couldn't buy maybe he could. He thanked me for my honesty. So I've past on the info and thinking I will probably let this one go on the advice of my realtor. Thoughts anyone?

Usually if it is an area you personally do not want to go to than don't do it. Just a rule of thumb.
You could have told the owner you would like to put it under contract with an inspection period. Then assign the contract to the other interested investor for a fee. To late now however.

Michael Mangham
MD Home Acquisitions LLC

a fee

A Hypothetical financial statement showing assets and liabilities, or income and expenses that may be recognized in the future. Pro formas can illustrate projected earnings if a company were to merge with another, or sell off part of its operations. Business firms often are asked to submit pro forma statements when making a loan application. For example, a loan request for bank financing to purchase and carry inventory ordinarily would include a pro forma statement showing the impact of the amount borrowed on current assets and liabilities in the most recent balance sheet. Banks also use pro forma statements to indicate expected revenues from a bank Acquisition or Merger with another bank, from a Joint Venture that involves equity participation with other firms, or anticipated income and cash flow from a new business activity.

Think of it as a business plan more or less. It would be something you may or may not wanna include when you're wholesaling a regular property.

Nicely put Dallas-

BEFORE I had a good relatioship w/banks, I used the proforma AND a signed lease agreement for the property for added insurance of approval for loans

I actually could still put the property under contract, because he is just wanting it sold, as long as no one else has bought it, which I am doubting.

Hi Tammy go look at the property an then you will know if you want to go any further with it, it may be a great opportunity, at least go look at it then you will have a better idea on what you want to do. All Iam saying give it a chance an with out looking at it how will you know an take a good look at the roof an see if there is any water damage an how bad if there is, wishing the very best,Jim

Go look at it today if you can. Take pictures while you're there & maybe a video of the property. If you have a good feeling for the neighborhood, then it should have no problem selling. Just because someone advises you not to take it, doesn't mean they're always going to be right. At the end of the day, it's your decision. Usually, your gut feeling is right.

It's basically a business plan. Thanks, Mike!

For all your help on this property. You phone conversation just clarified so much for me. Tammy