HR is this it????? - Posted by OS- Louisiana

Real Estate Investing Real Estate Financing
1

Posted by HR on September 03, 2001 at 15:21:59:

OS,

There could be a good potential deal here. You may be able to flip this to another investor, create the deal and assign to another investor, sell on a bond for deed to a homeowner with lousy credit, etc. You have lots of options here. My thought is you could probably move it at your meeting tonight, but you better have it under contract before you talk about it first!

I’ll send you my private phone number in an email; call me. Please don’t give the number out. There is just too much to type here and too many good possibilities on this deal.

I’m thinking a few offers: 1) 5k, as is, close in a week; 2) 8k; 1k now, the balance in 9 months; 3) 10k; $500/month for 20 months. 4) 12k; $250/month for 48 months. All these offers depend on your exit strategy: keeping it as a rental; wholesale flip; owner finance to a homeowner with bad credit, etc. The exit strategy is partly determined by what offer she will take. If you get a legitimate deal, you will be able to move it. The key will be collecting some names tonight at your reia group, or figuring out how you can come up with a few k to buy this thing…

She’s gonna take an offer. You got a deal here. Don’t lose it. Let’s talk so we can figure this out, then when you come to New Orleans you can buy me a milkshake as a thank you. (I’m partial to strawberry).

Cheers,

HR

2

HR is this it??? - Posted by OS- Louisiana

Posted by OS- Louisiana on September 03, 2001 at 11:36:00:

Hi HR,
It’s OS from New Iberia, La. I’m taking you up on your offer although it has been some time you may not remember. I know your time is so valuable I’ll get to the point.
House Info:
3bd 1 bth sfh listed at $15k for six months, it was put under contract at $10k during this summer. The contract did not go through now it is back on the market.
tin roof (you know the type),asbestos looking square siding that is falling off in places, some rotting wood under the exposed siding. minor leak in the living room, nice hardwood floors, decent kitchen, no front yard, but large backyard over taken by grass, functional a/c unit but no heat not even space heaters, storage unit is connected to the house and seems too close to the neighbors house less than 4ft apart on that side, inside doors need replacing , worn carpet in the bed rooms.I’m working on heating estimates now becuase if this is a go it will be nearly winter when it is time fly.

Seller:
Senior seller 74yrs, owns free and clear will not finance but very motivated. Currently lives with her daughter. She does not have the money to fix the house and just wants to get rid of it because she needs the money.The granddaughter is living in it to keep it occupied until sale. All of her things are boxed and ready to move. granddaughter gave the impression that they may take less than $10k.Seemed really disappointed at the loss of the sale. I don’t want to take advantage, but I’m thinking $8500.

RE agent:
Can not come up with comps less than a year old and they were on average between $35K- 39K (ARV). I tried the courthouse and it was a huge hassle to get info but I’m going back. They treated me like I was up to something. This is a small town and you know how that is. Pop. less than 35000.

Carpenter:
He looked at the house and said that it would take $15K to bring the house up to standard including his fee. The other houses on the street have vinyl siding. If this is doable I will get an itemized list. Also another quote because I think it can be done cheaper.

My info:
28 yrs old
Decent credit 705 Fico score
High debt to income ratio ( extremely) house, car, student loans , wife , toddler and a new born. 1 mth old.
I’m sure you know what teachers in LA get paid so I don’t have to go there.
No equity in my home (VA loan next to no money down 1 1/2 years in it)
I was considering a Hard money loan to pull this off, however I’m having trouble finding any in LA. I have searched the archives and came up with a few companies hardmoney loans.com and some others. I have yet to be able to speak with a human. Financing this is my major problem. It would certainly help my confidence if I knew I had access to the money to perform this. I would like to rehab this and sell. The most recent sales are between $35-39K. this seems sort of slim to me, but this would be my first rehab. If I could not sell quickly could I refi the HM loan and keep this as a rental? It is in a decent slightly low income area that I’m familiar with and with section 8 could rent out from $385-410/m even higher dependant on the condition of the property . Then try to sell at a later date after I get some land lording experience. Please stop me in my tracks if you do not agree with any of this or need more info. I’m also working on pictures of the property and similar ones in my area to post and get opinions on. I’m also furthering my due diligence.
I’m going to REI meeting in Lafayette tonight. They meet on the first Monday of the month. I hope I make a few good contacts. I will also take you up on your invite to the one in N. O. , however this newborn is a handful (smile). Thank you for your time and analysis of this one HR as I’m sure you get hundreds of e-mails from posting on the site.
OS- Louisiana