I realized the discrepancy as I typed it and wondered whether to rework it. Sorry. I’m not experienced in guesstimating - but to buy the house today, truly “as-is” would leave the following To Do List:
Finish installing new carpet on stairs and vinyl installation in kitchen. (Goods all ready purchased and partially installed)
Power wash the mildew stains from the outside and decking. Pool needs good scrub.
Haul off about 8 old rusty cars from the surrounding area.
And ALOT of crap from the shed.
Tidy up the yard–tons of leaves.
Spit-polish and shine the inside.
I guess that wouldn’t come close to $10K…my bad.
Talked with the realtor earlier, who wouldn’t disclose mtg. balance, but that owner is very anxious and willing to see “any reasonable offer”. That being said, and after reading your email - I guess a sensible offer would be closer to $100-115K. Is that more in line?
Yes, I’m new. And this will be my first flip, and I’m so excited (the adrenaline rush this biz generates is addictive!) but hesitant.
To whom do I market it? I’m hungry enough to let this fly skinny (Santa needs cold hard cash!) but I don’t know any rehabbers, brokers in my area yet. This property really just needs some junk hauled to the dump and a good cleaning crew, not much rehabbing. And the buyer is extremely anxious to be rid of it - remarried, paying 2 mtgs, was going to rent it out if it didn’t move this week… If I were to use a newspaper ad…saying what? “Cheap house, gotta MOVE IT!”
I ordered Bronchick’s Flipping course, should be here tomorrow. Guess I should wait and read it b4 bothering you wonderfully inspiring, creative, talented people!
Don’t be too eager to sell cheap. It is more fun to put big funds in your packet or pocketbook than small funds.
Maybe you should do the clean-up and try to sell to an owner-occupant–these the people who typically pay the highest prices for properties. Get one with good credit who gets a new loan and you are out of it clean, with cash.
You remind me of my landlords teenager son several years back. We lived in a house on a long driveway up the hill from the road. He drove off the road and got stuck in the dirt on the downhill side of the road. But he was still blocking the road. He was afraid of causing an inconvenience to the other neighbors that shared the driveway, so said “Let’s just push it down the hill.” That would have probably damaged the car, or at the least made it very difficult to get the car back up on the driveay. We more mature folk calmed him down. We got one of our cars and some rope and were able to pull the car back up to the driveway.
Take a few deep breathes. Do not panic sell and cut your profit down. If necessary, consult with people here on issues and problems that come up. Get out and get a bunch of comparables so you can be sure this is a good deal and so you can price it right for the resale.
Re: Need to flip this, but how? - Posted by Bashir
Posted by Bashir on November 27, 2001 at 18:46:54:
You need to post the details of your deal b/f anyone can tell you what to do. What are your numbers and the terms of your deal. If it’s in a war zone you may have a hard time selling it to a rehabber, or getting a hard money loan for it b/c the lender may not want it back! If it’s in a bad area and you bought it really really cheap you may be able to sell it to a Slumlord. Good luck though! Glad you swung the bat!
Why not give us a little information so we can help?
What is he asking for? How much is the house worth?
Where are you located at?
Does it need repairs? How much does he owe and how much does he want up front if anything?
You can get it under contract but let’s make sure you have a deal if it is too “skinny”. Something I have not been called in a while by the way, time to make new years resolutions
What you say makes sense but I need to get in and out of this with as absolute little of my money used as possible. I’m a newbie, remember? (Translation: rich in brains and guts, but cash poor)
That’s why I wanted to do a fast flip.
Thanks so much!!!
Karen
Details: 4 or 5B/3B - master tub jetted, 17x20 sunroom, on 4 acres, close to town, beautiful country setting. Well landscaped, above-ground pool with nice decking, det. 2 car garage, lg. shed wired, kids playhouse.
Numbers: initial price tag of $165K, comps same or better, assessed at $146K. I’m waiting now to find out mtg. info but plan to make a first offer of $85K as is. To make it spic-n-span, move-in condition should take $10-$15K max. So IF my low ball is accepted, I planned to flip it for $90K.
Would those #'s be acceptable to an investor or rehabber?
Re: Need to flip this, but how? - Posted by Ronald * Starr
Posted by Ronald * Starr on November 28, 2001 at 16:39:58:
Karen----------
I just read your later response to Bashir. If it really is worth about $150K in it’s “as is” condition, you are insane to sell it for $90K. Figure about 10% or 15% below market value is a discount that will draw the buyers like honey draws ants.
Now, in one post you say the house needs only to have somebody haul out the trash and clean it up some. Then you say it needs a maximum of $15K cleanup. These descriptions sound very discordant to me. I would envision the first description as requiring no more than about $2K or $3K of dollars, probably less. The $15K figure makes it sound like there is fairly serious work to be done on the property.
You also indicate that you have not even made an offer to the owner, let alone come to a selling price. You are counting your chickens before the hatch when you are asking about how to find a buyer when you are at this stage. I would doubt that the owner would take seriously an offer of the magnitude that you mention–$85K. If she accepts it, fine, then you can work on trying to sell the property.
If you can reach a sales agreement, set the closing about 60 or 90 days away. That will give you plenty of time to resell the property. In the meantime, you can be reading up on how to sell homes. There are probably some books in your local public library and there are plenty of posts on CREONLINE.COM and other websites about reselling properties.
Re: Need to flip this, but how? - Posted by mensahmorgan
Posted by mensahmorgan on November 28, 2001 at 14:47:30:
I just got an email from a Karen, are you the same Karen in Prince Goerges County? This deal sounds good! Which city is this property located? I am looking at property in Hyttsville and Capitol Hieghts at the moment. If it is really worth 165K and you can get it for 85K and it only need 15k to rehab, I will take it from your hands for 90K. Have you researched these numbers? With the details that Karen has supplied, can this deal fly? Any input?
