OfflineVacant home for ten years.
House is a mess. Needs new baths, walls in most rooms. New roof and some of the wood structure underneath the roof area. I forget what they call this area. Pests must be living in their by now.
Owner wants to sell or else State may seize it, fix it and offer it back to him for fix up costs.
Real Estate Club director told me to ask the guy what he wants and maybe give him what he wants, but more money to owner means longer time for me in option. I am unclear as to what this other investor was trying to tell me.
Comps in area average out to a sold for $188 per sq.ft.
If I take the comps three comps that are close to this subject property and average them, I get an average sales price of $241,725.00
Property cannot be inspected because there is too much clutter and debris inside.
I do not want to hire a contractor, unless I know I could get this home under contract and I could sleep tonight after doing so.
Who should pay for the cleanup, so an inspection can be performed? I am not under contract so why should I?
Maybe having a lawyer write up an Option with an Inspection contingency in it would be fine.
Can a contract with a ball park figure initially be written and the final estimate be the determining factor in a contingency?
I would also rest easier if there was a contingency stating this offer is contingent upon a third party approval.
Come on guys, give me some ideas here.
Ive never seen a property so cluttered that I couldn't get repair costs, this is a first. Who's stuff is it anyway?
You have plenty of outs as far as your contract is concerned. Your "3rd party approval" or "based upon satifactory inspection" should work fine. And yes, you can change your price offer according to what you find out from inspection.
What is your plan with this property? Are you wholesaling, flipping, or keeping it?
Give more details, this could get interesting...
Real estate works...
A lot of it depends how motivated the seller is. I would find a way to have a contractor check it out with you. What the seller asks for, and what the house is worth are 2 different things. Right now, it's not in the $240k condition because of what's in it and the overall condition of repairs.
An Option contract doesn't bind you to purchase the house, but gives the option to BUY it. If you give the seller everything, where's your stake in the deal? You need to have some control over the deal, and as long as you make it a win-win-win for everybody, you'll be ok.
House is a mess. Needs new baths, walls in most rooms. New roof and some of the wood structure underneath the roof area. I forget what they call this area. Pests must be living in their by now.
Owner wants to sell or else State may seize it, fix it and offer it back to him for fix up costs.
Real Estate Club director told me to ask the guy what he wants and maybe give him what he wants, but more money to owner means longer time for me in option. I am unclear as to what this other investor was trying to tell me.
Comps in area average out to a sold for $188 per sq.ft.
If I take the comps three comps that are close to this subject property and average them, I get an average sales price of $241,725.00
Property cannot be inspected because there is too much clutter and debris inside.
I do not want to hire a contractor, unless I know I could get this home under contract and I could sleep tonight after doing so.
Who should pay for the cleanup, so an inspection can be performed? I am not under contract so why should I?
Maybe having a lawyer write up an Option with an Inspection contingency in it would be fine.
Can a contract with a ball park figure initially be written and the final estimate be the determining factor in a contingency?
I would also rest easier if there was a contingency stating this offer is contingent upon a third party approval.
Come on guys, give me some ideas here.
http://www.deangraziosi.com/real-estate-forums/market-trends-and-conditi...
you need to know VALUES in your area-- get estimate of repairs-check foundation, structure, roof
how much is owed on property- whats your exit strategy
any new homes nearby? if so how much
vacant 10yrs? age of house? yeah you got rodents,snakes,bugs and who knows what
You have plenty of outs as far as your contract is concerned. Your "3rd party approval" or "based upon satifactory inspection" should work fine. And yes, you can change your price offer according to what you find out from inspection.
What is your plan with this property? Are you wholesaling, flipping, or keeping it?
Give more details, this could get interesting...
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
First, determine which exit strategy/strategies that you might use to take down this deal. None of the other details matter until after you've determined what you want to do with this property.
Second, you could use an option or P&S to establish controlling interest in that property. Multiple strategies exist for setting one's initial offer price. For example, you could set your initial offer price to whatever price your seller wants. After having tied up the property, you could determine the ARV, perform your inspection(s) and other due diligence, and negotiate to adjust your offer price based on the results. Stated another way, what you offer and what you end up paying could be 2 entirely different figures.
Third, an alternative approach is for you to determine the ARV, use a repairs estimate figure (eg $15K), and determine your initial offer price. One of your contingencies could be that your repairs are capped at $15K. Again, after having executed your option or P&S, you can do your due diligence, and negotiate afterward if necessary.
Fourth, another alternative approach is for you to offer to equity partner with the seller. After having established an interest in the property, you could determine the ARV, perform your due diligence, and determine your costs. After having performed the rehab, you and your partner could flip or continue to hold that property together.
And the list goes on. . . .