Any ideas for this one? (first deal) - Posted by Jim C

Posted by Kim T on June 30, 2001 at 20:23:13:

If you have a local club - talk to some of the other members or some of the leaders of the club. You might try an ad in the paper - you should get a lot of response to an ad advertising a property for sale that low under market. For that matter, you might offer the seller an option to buy. You will pay the seller $2,000 for her the option for you to purchase the home in 30 or 60 days. If you can get her to agree to let you show the property maybe one day a week for a month you would have a chance to sell the property. Call up local investors that you know buy properties all the time (or look for those “I buy houses” ads), or put an ad in the paper to sell the property. If you find a buyer in the 30 or 60 days, you buy the property and then sell to your buyer. If it a good a deal as it sound, you might be able to sell to another investor quickly or if you want to try and sell for the big bucks advertise to sell at $60,000 or $65,000. But again I caution you to talk to the experts in your area. One way I found people who buy lot’s of homes is to call on the “I buy Houses”. Two of those I called on were major investors that purchased 3 to 4 homes a month to fix up. The wanted homes that they could make at least $20,000 on, make a few calls see what you come up with. I know one guy here in KC that has no money or credit, but he hunts down the motivated sellers, offers them a low amount to hold the property for a month, or asks them to give him a week to find financing. Then he starts calling the investors and pitching the deal. He makes $5,000 a deal. He buys & simultaneously sells to his investor, and pockets $5,000 for his trouble. It can be done.

Any ideas for this one? (first deal) - Posted by Jim C

Posted by Jim C on June 30, 2001 at 13:25:52:

Any ideas on what I can do with this deal?

Some lady called me and wants to sell her house for $35K. She said that a neighbor was recently selling his for $70K, but the house is probably only worth $60-65K (I don’t know, though, I haven’t seen it yet). I don’t think she owes anything on the house. She said that she just wants out.

But here’s the thing. She has tenants living in there now. She claims that they are long term tenants that always pay on time. I don’t know a good way to structure this deal, being that I don’t have any money to put into it as a down payment. I wasn’t planning on having any tenants this early in my REI career, but she sounds motivated and I don’t want to just throw this deal away.

Should I ask her for owner financing? And if she does take that, do you think that she would take it without a down payment? I mean does this seem realistic? I don’t know if anyone will accept owner financing without any down payment.

If anyone has any ideas on what I can do here, let me know. I would greatly appreciate it. This will be my first deal and I don’t want to screw it up.

THANKS A LOT!!!

Jim C

Re: Any ideas for this one? (first deal) - Posted by Ronald * Starr

Posted by Ronald * Starr on July 01, 2001 at 11:02:02:

Jim C-----------------

You don’t mention whether you have the ability to finance this purchase yourself, either with your own money or borrowed money.

From comment that you did not plan on having renters now, sounds like you want to do fast resales of properties. That is, unless you mean you want to buy properties and hold them empty.

Renters are not chained to the building. They can be given notice to move out. However, it is possible the renters are the people to whom you could sell the property. At market value or close to it.

If the property is worth $60K or $65K, you could borrow the purchase price from the “hard money” lenders in your area, fix up the property, and then sell it retail – making maybe $20K-$30K profit. Not too bad for a few months part-time work. If you can finance it yourself, that may be even better, since the hard-money lenders are high-priced.

Good Investing***************Ron Starr******************

Re: Any ideas for this one? (first deal) - Posted by Kim T

Posted by Kim T on June 30, 2001 at 14:18:28:

Do know any other people interested in investing? If you could find someone with money looking for a good deal, you could offer to purchase the property in 30 days at her $35,000 with a low security deposit of say $500. Then go to other interested parties that have access to cash or quick credit and offer to sell the same property to them for $45,000 and close at the same time. You then go to the closing table and purchase the home for $35,000 and then sell at the same time for $45,000. You have then made $10,000, the lady has sold her home, and your investor friend now has a home that is worth $65,000 that he only purchased for $45,000. He can then put it on the market and sell it for $65,000 or make a few repairs and sell it for $75,000 and make $20,000 to $30,000. Check around with the big players in your local real estate investing club. Many investors would be willing to partner with you to help you do the deal. You also need to look at the house, and do you home work and make sure the property is worth what she says it is. Just an idea, please check it out with local experts: ie real estate agents, lawyers, title companies, etc.

Re: Any ideas for this one? (first deal) - Posted by Mike Schmidt (IL)

Posted by Mike Schmidt (IL) on June 30, 2001 at 14:15:03:

First you need to figure out what you will do with the home. Do you want to be a landlord or do you want to offer the home as a L/O? What kind of lease does the current tennant have, how long till it runs out?

Whats your out with this property?
Current rents?
FMV?
Taxes?

Lot you could do, also want to find out what she plans to do with the cash. SHe might be better off financing it to spread out the funds etc.

Re: Any ideas for this one? (first deal) - Posted by Jim C

Posted by Jim C on June 30, 2001 at 15:25:33:

Any ideas on how to find someone that would be willing to buy an income property?

Should I put an ad in the paper? Or call other investors?

Thanks a lot!!!

Jim C