Posted by ryan on June 09, 2003 at 19:14:42:
If it’s worth around 49k AS-IS then you might want to increase the offer (or let the owner speak first) or else you might offend the owner and lose the deal. A few hundred dollars can mean a lot to some people but don’t approach your subject until you get some info about the subject’s motives and needs…
How is this for a first deal? - Posted by Blair Cosby
Posted by Blair Cosby on June 09, 2003 at 18:23:23:
Hello Everyone,
I’ve been studying real estate investing for the past 6 months and have become an avid reader of this board. Thanks for the free education.
A friend of mine rents a house that is being foreclosed because of delinquent property taxes. The owner owes $3600 (must be paid by the end of this month) and has no way to pay it. The assessment value is 49K. There is no mortgage. The house needs new carpeting and paint, and the yard is in total disrepair, but it seem to be in good shape otherwise.
I plan to offer the owner a few hundred dollars for the property and resell it to an investor for 10-15K. Doable?
Re: How is this for a first deal? - Posted by Brent_IL
Posted by Brent_IL on June 09, 2003 at 21:39:02:
Pretty good.
I doubt the owner will let it go for a few hundred dollars at this stage of the game, but assuming that a deal can be made, pick up the junk in the yard, mow the lawn, run good comps, and list it with a REALTOR® for sale as-is. 45 days is a long enough listing. If the agent won’t take it, his listing price is wrong or he doesn?t intend to be an active marketer.
Even if you are low-balled with retail offers at $40K, and pay a 10% sales commission, you’ll be further ahead than you would by selling for $10,000 because you didn’t want to paint.
Lock up the deal first. If you buy it right you’ll always be able to divest for profit. Check with the county to see what happens at the end of the month. Maybe all they do is put a lien on the house. You can pay the taxes when you transfer title to a new buyer.
Many houses that you will acquire will need to be patched and painted and carpeted. Account for this in your offers.