need experienced minds, help with offer - Posted by Dave

Real Estate Investing
1

Posted by Lee on August 06, 1999 at 24:02:25:

Hi Dave,

There is a lot to say, and I’m not as experienced as most here so I’ll be brief (besides that, I don’t type very well).

  1. What does your flyer say?

2)What does your newspaper add say?

  1. The lady w/ the divorce:
    Go read her divorce file BEFORE you see the house (NO excuses).
    Learn her situation. (Know thy opponent before doing battle).

4)Define: Frozen up.

5)FORGET… THE… ASSESSOR’S… VALUE…, .
IT HAS NOTHING TO DO WITH MARKET VALUE !
DO NOT FORGET THAT.
I’m not yelling at “you”, I’m yelling at everyone that even conciders the TAX or ASSESSOR’S values, Don’t get on a slipery slope.

6)The 160 to 300 range: Are those recent “SALES” prices? Or is that the houses you will have to compete against when you are ready to sell?
You will have to narrow down your comps. Consult a Realtor, or see the assessor’s tax rolls for a complete SALES history of the neighborhood.

7)Paint: The CREOnline folks are going to beat me up on this one.
$1.00 to $1.25 per heated square foot for the interior. If you do a cheap job in a high end market you WILL pay dearly for your mistake.
He who pays little for a job will get what he pays for.
Exterior paint: 25 cents per square foot of exterior surface.

8)Carpet: I use the figure of 14 to 15 dollars per square yard (9 square feet). I take the the sq footage and multiply it by what ever price. example: $15 (plus tax) per yard divided by 9 (sq ft) = 1.666 (without tax) per square foot.
Lets use a 2000 square foot house. 2000 x 1.666 = $3332.00 for carpet.
Don’t scrimp here either.

9)AC: Call around to shop prices.

REALITY CHECK…

  1. The lady is broke, Look for her name in the foreclosure files, I will bet you’ll find her there.

11)Flip, in this price range?.. I doubt it.
How long can you stay… Hold… Suport the property at 1100 per month?
Plus repairs, IF you have to make them just in case you can’t flip it?
Plan for the worst, you will come out smelling great.

I am not a negative person, I just hate suprises! So… I plan for them, you should too, we all know they will happen.

12)You said “She just wants out”? She sounds desperate to me. Help her out, but first, YOU find out what she owes… then make your offer just above that so she will have some moving (or whatever) money.

I am not picking on you, it’s just that I’ve been where you and many other readers are now, I remember what it was like. The great thing about this site is that we are all students, no mater what age or what color or what race we are or how long we’ve been doing what ever we do, we will all continue to learn. My goodness, what a gift.

Thank you JP and Terry!

Lee

2

need experienced minds, help with offer - Posted by Dave

Posted by Dave on August 05, 1999 at 19:31:09:

OK I am a newbee, I have been educating myself for a little while now and have really made an effort lately to find a deal. I printed up flyers, called on adds, even put an add in the paper. A lady called me yesterday. She went through a divorce and she wants to get rid of her house immediately. She is going to place an add in the paper Saturday. she wants me to come tomorrow, see the house and make an offer. I feel like I have frozen up. I have made a couple of offers on different properties but this one seems like the real deal ( I think). the house has 2 mortgages on it for a total of 110,000. The asessed value is 130,000 ten years ago. The other houses in the neighborhood are in the 160,000 to 300,000 range. Her payment is about 1,100. The loan is assumable with qualification. The house is fairly good shape. needs paint, carpet and there is something wrong with the A/C . It is a 3/2 with a den. It is in Naples, FL, were I also reside. I would love to flip a house for my fist deal. She just wants out and says she wants to close in a week if I can make it happen. I don’t have much money but I can come up with it if it is the right deal (5-10k). She says she is looking for an offer in the 120-125k range, so I deffinately be below that. Please advise. This is my first and i feel it could be the ice breaker.
FYI- Naples is very expensive. hundreds of properties in the 10,000,000 range. Not a whole lot in this range and lower. Need help with the details.
If I have left any info out please ask if you wouldn’t mind helping.
thayou very much
Dave

3

Re: need experienced minds, help with offer - Posted by Bud Branstetter

Posted by Bud Branstetter on August 10, 1999 at 21:37:28:

Hey Dave, how come nobody wanted to advise you? First you do have to pin down value more than a 160-300 range. What is this house worth in a fix up value. My guess is not much repair. Once you establish what the value is can guide you to what you can do. A price of 65-70% says she is motivated and you may be able to steal it. More likely not so can she provide any owner financing with how much cash. If it more than 5% of value you probably can’t get it from the new buyer and make you any profit. You can also do the “here’s is my offer” you can buy it back if you get a better offer. You do not want to commit to making payments unless you are certain this house would lease/sell quickly. It may be only an option that you could get.