Posted by Tarheel T on July 28, 2001 at 16:50:51:
David, David, David!!
What value would you add to it if you are not the rehabber??
Do you really have to ask this question? Have you never heard of the concept of buying low and selling high? It’s done every day.
Tracy Thompson
Overcoming impression of Distressed property - Posted by lamarr
Posted by lamarr on July 27, 2001 at 02:58:52:
Hi everyone!
My son and I went out to see houses from the city’s Vacant and Substandard building report. We came across a few properties that were absolutly TRASHED! I don’t know how to go about trying to tie up a property in this condition; filth everywhere, busted windows etc. I’m interested in flipping, but how do I get this property in condition to convince a rehabber to take it from me? Who has the job of cleaning it? Another question; about those big refuse dumpsters you see at homes that are being cleaned out. Who is doing this? Is it the city? Do they then charge this to the property? I’ve found what I think are a few promising candidates for my first deal, I was just shocked at how people can demolish a house JEESH!
Guidance please.
Re: Overcoming impression of Distressed property - Posted by Tarheel T
Posted by Tarheel T on July 28, 2001 at 16:43:33:
Who does the fixup on a property of this type?Well you can do some of it to take the rough edges off, or not, either way no problem to flip!!
I have just bought a prop. that the neighbors say had a big dumpster thing there before I became involved, and the city did it. There was no lein for this on record, just something the city does here. Don’t worry so much!!
Good Luck
Tracy
Re: Overcoming impression of Distressed property - Posted by David
Posted by David on July 27, 2001 at 12:21:58:
become the re-habber…
If you don’t plan to do any re-habbing of the property, what value will you add to it? Why wouldn’t prospective re-habbers simply buy direct from the City? Surely they can get copies of the same “vacant and substandard building” report?
Re: Overcoming impression of Distressed property - Posted by JT - IN (St. Barths, FWI)
Posted by JT - IN (St. Barths, FWI) on July 27, 2001 at 10:01:15:
lamarr:
If you are shocked, or mortified at the appearance of these properties, then I would advise to look elsewhere, especially since you are talking “1st Deal”, here. I tend to think that we should invest a little more in our comfort zone, at least at first. An experiecned rehabber/investor will quickly scout out your discomfort here, and exploit it, as not having the stomach for this type of activity. It comes accross loud and clear in your post, and I do realize you are seeking answers here, but i feel this will be a problem for you in this type of deal.
Look in a little less of a warzone, and put together a safer, even if less profitable, deal, for your first time; which will lead to a 2nd time, vs. getting into a quagmire deal, that could sour you from proceeding further.
Just the way that I view things…
JT - IN (from St. Barth, FWI)
Re: Overcoming impression of Distressed property - Posted by SandyFL
Posted by SandyFL on July 27, 2001 at 05:42:55:
Believe me a rehabber worth his or her salt has seen trashed properties like that and it won’t scare them off. I think banks pay for the detrashing of properties when they take back foreclosures. Otherwise I might wonder if the property has been sold to someone already?
Read some of the archived posts and articles by Steve Cook and Hal (HR). Those dumps “could” be goldmines. The only ones I would caution you about is where the whole street is full of junkers like you saw. If it’s the nastiest house on a good street with alot of normal clean houses around, you have a whole better opportunity than if it’s just one of a whole row of dogs.
Good luck!
SandyFL