Posted by Lance on October 28, 2000 at 19:51:58:
gee pav how many rehabs have your done?
Major Rehab-need advice - Posted by Brad
Posted by Brad on October 28, 2000 at 16:41:07:
Here’s the deal:
I rehab houses and finance with construction loans. I am trying to find out other options on how to buy a property.
I am currently negotiating on a 7b/7ba house that needs major rennovations (1st offer of 110K was countered at 145K)I’m about to make a 2nd offer…
Here’s the numbers:
Asking price: 165K
Comparables: 285K-300K
Rehab costs: 45K-50K
What I think I’ll pay for the house: 125-140K
I have never done a lease option before. I have also never extended myself this much. Could I lease option the house and fix it up and purchase when completed? What would a deal look like? How could I offer this to the seller through a real estate agent? How can I protect myself if the owner defaults on the lease/option and I’ve spent 50K on rehab?
Please help!
Brad
Re: Major Rehab-need advice - Posted by Laure
Posted by Laure on October 29, 2000 at 09:19:32:
Never put YOUR MONEY into a house that doesn’t “belong” to you. Unless, you don’t mind losing 50k.
Laure 
Re: Major Rehab-need advice - Posted by Bill Scott
Posted by Bill Scott on October 29, 2000 at 07:38:47:
You need to find some way to get the deed if you are going to put 50K at risk. If you’ve done rehabs before, you know that your estimate is usually going to wind up being low. Also, figure your holding costs for things like utilities and loan payment each month.
Also, for what it’s worth, if a house that’s worth 300K fixed up needs 50K in work—what happened to it? Are we talking structural problems here due to poor workmanship when the house was built? I’m still struggling (after a year) to get a three family completed that has this problem and if I had known who modified the house, I would have flipped it instead of hanging on to it. I’m getting tired of rebuilding walls!
Anyway, that’s my two cents worth…
Re: Major Rehab-need advice - Posted by Bob H
Posted by Bob H on October 29, 2000 at 01:25:18:
I think lease optioning a property where you plan to invest 50K in rehab, before you take title, is extremely risky on your part. Too many things (all of them bad) can happen that could put your investment entirely at risk. A much safer alternative would be short-term owner financing, where you are in title, and the seller carries a 1st or 2nd mtg.
Re: Major Rehab-need advice - Posted by Pavon Bailey
Posted by Pavon Bailey on October 28, 2000 at 18:18:36:
BRAD:
Hi there! To answer your question, yes there are other alternative options to acquire property. I can go on and on explaining each one, so I’ve made the job easier for you.
How?
I’ve “compressed” the alternative methods to buy real estate on my website. As I said before, this is a “compressed” (and I do mean compressed) version, but after rreading it, you should have some basic idea of the other methods available.
Go to my website at www.property-buyer.net and click on the link at the left hand side that says “FAQ”. It’ll explain some of the concepts, but you will have more questions. Here’s what you shoud do, at least in my opinion:
Spend about 2 minutes reading the info on the FAQ portion of my website. If you see a financing method that “clicks” in your head, come back here to CREOnline and read the “How To” articles and newsgroup postings that deal with your subject matter (i.e split funding). My site will tell you the VERY BASIC of each one. I guarantee you that you will ahve questions that my site will not be able to answer.
How much is this: FREE! How much time did you have to sacrifice? Maybe about 2 hours, depending on how fast your system is, how fast you can pick up items relating to your subject, and how fast you read and understand the material.
I often hear people on here saying “Get the deed!” “Get the deed!” The majority believes that this is true, so I’m with it. Point: Make any offer that will enable you to get the deed.
Have a nice and productive day. I hope the info on my website helps you out–or at least puts you on the “on ramp” If you need any other assistance, drop me an email.
Respectfully,
Pavon Bailey