Need Help, Possible L/O Deals - Posted by Bayo

Posted by Ed Copp on February 09, 2003 at 15:36:33:

that you have not done this before, now that said.

The first deal is a bit confusing in the way your numbers are stated. You say you have comps, and then you state a different number for Realtors. You can not have it both ways either you have comps for one number or the other or you do not. The property is worth whatever it is worth. My best guess is that you may have comps @$86,400 that would be the possible worth of the property. To be prudent the Realtors commission should be figured as part of the comps that you have, not added on. It just does not work that way. If you are sharp enough to buy and sell this property, or any property you deserve the commission for yourself, so if you earn it keep it.

So with a full retail of $86,400 against a possible purchase of about $84K you have no deal at all. Just figure in one or two payments for holding time, and some costs for closing and you will readily see that your deal is a negative.

The 1031 exchange is a whole other subject, and unless you know what you are doing you stand a chance of being unsuccessful here. The fact that you are not talking to the actual owner does not help either. I have found that it is most often a complete waste of time to talk with anyone who cannot sign the deed and get the deal done. What usually happens is they will pump you for all of your info and then shop the deal in the marketplace, often taking the first deal that they can find that is better than yours.

On the second deal, once again you are not talking to the owner so you risk being left out in the cold here. The rent price will not service the debt for the asking price even at todays low interest rates. Her situation sounds much like the ex-husband (and she) are the sellers. If you give them any info they will use it against you.

For a lease option end use it would be a good idea to have a tenant lined up in advance.

One good thing is that cemetaries usually provide quiet neighbors.

Need Help, Possible L/O Deals - Posted by Bayo

Posted by Bayo on February 09, 2003 at 08:03:46:

I am a newbie with two possible deals, one is a townhouse 2 br 1.5 bath asking price is 83,000-84,000, Rent is priced at $925 a month. I got comps on the property at $86,400 at full retail. (90,000 for realtors). I have been considering doing a lease option. My only concern is that behind the row of townhouses is a cemetary. Accross the street is a Food Lion and there are schools near by, neighborhood is decent. I am just concerned I won’t find tenant Buyers b/c of cemetary. Should I try a low ball offer, and also give myself a 90 day out. I live in MD, the owner lives in FL, his son who lives here is taking care of selling. They want to do a 1031 exchange and the previous tenant left without notice, they are very motivated. Since I haven’t done this before, I’m concerned about not getting tenant/buyers in.

My second possible deal is a Townhouse, 3 br 2.5 baths,asking price $300-325,000 Rent price is $1,800 Single mother just got divorced is renting and needs to move to another home. The only problem is she is the one who called me and I asked for owner info and she said She would “pass it on” and didn’t want him to be “bombarded” with calls. She said she was “taking care of it”. I gave her my info to forward to landlord and she said she would.
The townhouses are located in a nice subdivision, I’m wondering if that’s a price to high to workout a L/O? She placed the ad and returned my message. Isn’t it suspicious that she’s trying to “handle” the situation as a renter??