Possible 1st deal - Posted by RobH - Atl

Real Estate Investing
1

Posted by RobH - Atl on January 03, 2003 at 18:36:44:

Hi Bill,

Actually what happened was my friend remembered this guy who talking about trying to get a new home, but couldn’t because he already had a VA loan on this house. He lived in the house for 27 yrs, recently moved into an apartment, and now the stepson is living there.

He just want to get this mortgage off his back so he can qual. for a new one.

I’ll tell you what, it PAYS to tell EVERYONE you know that you buy/sell homes, because as soon as I told my friend that, he started thinking of all kinds of people. It doesn’t hurt to mention that you’ll pay a finder’s fee for every deal they bring you too :slight_smile:

This is a HELL of an exciting business!

2

Possible 1st deal - Posted by RobH - Atl

Posted by RobH - Atl on January 03, 2003 at 03:25:28:

I REALLY need some guidance on this one.

It looks like I might finally have my first deal, maybe not, but I’ll know for sure from the good advice I hope to receive from you pros.

Here’s the situation.

$45,000 ARV

$11,000 remaining mortgage (he just wants to get rid of it like YESTERDAY, so most likely he’ll accept $11,000)

$6000-$8000 fix-up (Going to get outside estimate)

$550-$1000 Closing costs, etc… (around 5% of purchase price. Is that accurate???)

I’m going for $16,000 flip with buyer paying closing costs.

My profit: $5000

Buyers profit: AROUND $20,000

Does this look attractive to a rehabber? It does in my eyes, but I don’t know if I’m missing anything…

If not… looks like 2003 will start off with a BANG for me :slight_smile:

Thanks for your help, guys!!

3

Re: Possible 1st deal - Posted by Karen (MI)

Posted by Karen (MI) on January 04, 2003 at 19:02:11:

Is his VA loan an old one. The older VA loans can be assumed with no qualification if the seller would agree. Then you probably could tie up with an offer and flip it to an investor.

Good luck,
Karen

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Re: Possible 1st deal - Posted by michaela-ATL

Posted by michaela-ATL on January 04, 2003 at 08:12:02:

Rob,

let me know about it. I can’t imagine any part of atlanta with an arv of 45k, unless it’s in the ‘boonies’ or a warzone (but then, even in vine city the arvs are higher)

you can reach me at 404-641-7305 or varinia@mindspring.com

michaela

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Re: Possible 1st deal - Posted by Zack

Posted by Zack on January 03, 2003 at 21:44:33:

Looks good to me. I am in Atlanta also, so if you get the deal worked out let me know I may be interested in purchasing it from you. You can reach me at zack@bozacrealty.com or 678-432-8448

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Re: Possible 1st deal - Posted by BillB - Houston

Posted by BillB - Houston on January 03, 2003 at 12:36:46:

Rob,
I’m newer at this than you, so probably not qualified to help with your analysis. I was just curious as to how you turned up this opportunity. I understand the math on these deals, but struggle with prospecting. Any help would be appreciated.

7

Re: Possible 1st deal - Posted by RobH -Atl

Posted by RobH -Atl on January 05, 2003 at 04:22:13:

Hi Karen,

I’ll get all pertinent info when I talk to him again next week. He’s lived there for 27 yrs, but I’ll have to ask him is this the original loan. Thanks for that bit of info, I didn’t know to ask him that.

Thank for wishing me luck. Hopefully we’ll get the contract on it next week.

Take care!