Posted by Fern on October 09, 2001 at 21:18:19:
According to his course which Im almost done reading. He makes plenty of offers without seeing the inside first. But remeber that he is an experienced investor and has done many wholesale deals in the past 2 years.
By the way I LOve the BOOK. Boosting up my confidence a lot.
el dumpos - Posted by diana
Posted by diana on October 09, 2001 at 13:47:34:
Does anyone have any experience with buying complete dumps? I’m talking bad roof, broken windows, red paint on the front door screaming “KEEP OUT”, yard thigh high in weeds, no furnace, needs plumbing work.
I read on one of the success stories that a gentleman bought a house like this on a 1 year lease option (nothing down 250 a month) He then placed an ad in the paper 'El DUMPO, 0-down, u-fix. He said his phone rang off the wall and he ended up flipping it quite easy for a profit without lifting a finger.
Has anyone else done this?
I found an el dumpo in a so/so neighborhood. The idea of profiting without lifting a finger sounds pretty appealing.
One more thing.
How would I know if this house should actually be condemned?
Looking for your experiences.
Diana
Re: el dumpos - Posted by David Krulac
Posted by David Krulac on October 09, 2001 at 18:26:54:
Diana,
I’ve bought a few. they are out there and people will just give them away to you often for next to nothing or even nothing. I’ve turned down a few even for nothing. I bought a 3 bedroom brick house with new roof and new electrical service for $50. It’s hard to lose money with that deal, I mean you could sell it for $51 and make money! dumps scare most people, particularily when they are trashed out. I bought a house where the late owner didn’t throw any trash away, for years. It took a 40 yard dumpster and 12 truck loads to empty it. Good Luck
I love El Dumpos - Posted by SCook85
Posted by SCook85 on October 09, 2001 at 15:07:45:
Diana,
My love of el dumpos may be called an obsession by some. They are my favorite of all homes. I like buying them and flipping them without lifting a finger, and I like buying them and fixing them.
You see, no one wants those homes. Homeowners are scared to death of them so you can buy them REALLY CHEAP. Because you bought it REALLY CHEAP, you can sell it to another investor for REAL CHEAP, or just CHEAP and make some money without lifting a finger.
Condemned is good. If it is condemned you just have to fix it and get it uncondemned. But condemned chases everyone else away- again CHEAP is what you get homes for when you are the only one there to buy it.
I hope this helps,
Steve
Re: I love El Dumpos - Posted by MATT
Posted by MATT on October 16, 2001 at 14:57:47:
Steve, when dealing with condemned houses how do you go about finding out exactly why it was condemned. Do they have this information at the board of health?
Re: I love El Dumpos - Posted by diana
Posted by diana on October 09, 2001 at 18:30:39:
Steve,
Do you ever make offers without seeing the inside first? Also, what type of formula do you use on your rehabs?
Thanks,
Diana
Re: I love El Dumpos - Posted by SCook85
Posted by SCook85 on October 10, 2001 at 07:36:46:
Diana,
Yes I do make offers without seeing the inside of homes, but like Fern said, I have quite a bit of experience at doing it and I don’t recommend that everyone do it until they have some experience.
I’ve renovated enough homes to know my worst case scenario with fixing homes. So I use a formula such as ARV X 70% less $30k for repairs. If I’m targeting homes with ARV’s less then $80k, my Formula is ARV Less $25k (profit and costs) Less $30k Repairs, and sometimes I come up with negative numbers. That is OK. If I do, then I probably don’t want to renovate homes in those areas anyway. Once you get to know the homes in your area you can come up with a repair figure. Most of the time with smaller homes I figure on spending $20,000 per home, and larger homes I go to $30,000. But that is for a top notch rehab. Most rehabbers don’t spend as much as I do, so when I go to wholesale the home they figure on half the repairs that I did and it leaves much room for profit for me.
Anyway, I hope this helps,
Steve