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Author Topic: need help with ....  (Read 10598 times)

Offline kdhastedt

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Re:need help with ....
« Reply #15 on: May 23, 2006, 06:56:51 am »
<<Keith, i just relized i misspelled your name backward i appolagize. i do'n't want you to think i'm dislecsice  or anything....lol.>>

Not a problem.  You should look into joining DAM (Mothers Against Dyslexia)...LOL

<<... i do notice however that people over here are trying to compare thiere homes to new home prices and they think they can get top dollar for them.... which is logical i personally think if i were in that situation.>>

Older homes shouldn't be compared with new homes for a price point.  New homes are, well....new.  Most also come with a full warranty.  My home came with a 2-year "bumper-to-bumper" waranty.  Anything wrong will be corrected by the builder (who lives down the street in the development).  

I will say that some higher-end homes can be compared somewhat favorably with new homes but it's still not the same.  A lot of Realtors are smoking bad dog food when they price properties -- it's a dream price that they'd like to get.  In their defense, though, it is often the owner that thinks the property is worth that.

Now if you are just starting out and want the experience more than the money, that formaula can be adjusted to, say 80% and you'll have a thinner profit margin but a higher chance of getting the property.

Keith
I have CDO...it's like OCD but in alphabetical order - the way it should be!

Offline BigShem

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Re:need help with ....
« Reply #16 on: May 23, 2006, 11:04:37 am »
Thanks Again Keith, I like the insight.now heres another dilema as i was typing this last night i get another call???? so i talk to them ,these folks live in a devolpment around here known as ritch folk there is a mansion caompared to other homes. There asking 489,000.00 for there house so i used your formula there , so went with the 80% xfmv and come in just under 400,000.00  + i added fees and such +my assignment fee i was going to do 5%  and this all comes in at 443,000.00..... now i present this with them and in amazement they went for it..... now i have to find an investor who is looking for a house that big.... any suggestions on that one.... becuse this house needs no repair and has 5 large bedrooms 3 baths  and a hole bunch of other goodies..... any help on this one would definately be helpful.... Thanks BigShem

Offline kdhastedt

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Re:need help with ....
« Reply #17 on: May 23, 2006, 11:29:11 am »

Shem...

You need to multiply the Fair Market Value by the 70 or 80% factor then SUBTRACT fees, etc., not add them!!!!!!!!!!

This should have come out to $400K - 43K or a max offer of $357K

If you signed a contract, you may be in trouble here...go back and re-read the thread in its entirety.

Keith
I have CDO...it's like OCD but in alphabetical order - the way it should be!

Offline debmz

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Re:need help with ....
« Reply #18 on: May 23, 2006, 04:39:53 pm »
Keith,

I hope you can get out of this one!! My other bit of advice for a house this costly is to look for investor/buyers before you sign on the dotted line. If what you are saying about the length of time houses are on the market in your area is true, then this one won't sell quickly. Are you primarily operating as a wholesaler? Have you created a list of investors to contact when you find houses?

By the way, what sort of contingencies do you include in your contract in terms of being able to rescind it with no loss of respect or money?

Best of luck-

Deb

Offline BigShem

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Re:need help with ....
« Reply #19 on: May 23, 2006, 09:50:47 pm »
Keith , relax  i did it the right way the way you told me to. iwas just seeing if you paying attention .i actually got them down to 328,000.00 they want to move to florida... anywayi figure i can whole this one do a double close and possibly walk out with a little scratch in my pocket....

Deb, i think you have keith and i mixed up.... anyway nothing done in writing yet i do have to find an investor who wants this home..... then i'll have my lawer draw up the contracts then we'll do the deal....!!!!! Thanks BigShem

Offline debmz

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Re:need help with ....
« Reply #20 on: May 24, 2006, 06:32:02 am »
Hello, Big Shem-

I did confuse you with Keith- I was so concerned about your offer that I didn't pay attention. I think you are smarter and more experienced than you are letting on; sort of like Columbo!!

Great negotiating and best of luck!

Deb

Offline kdhastedt

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Re:need help with ....
« Reply #21 on: May 24, 2006, 07:16:30 am »

Shem...

"It's not nice to fool Mother Nature..." - lol

I was worried about you for a minute, there!  $328K on a $443K house is do-able.  How much work is needed?  HOw long will you have to hold?

Keith
I have CDO...it's like OCD but in alphabetical order - the way it should be!

Offline BigShem

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Re:need help with ....
« Reply #22 on: May 24, 2006, 11:46:50 am »
Sorry Keith, Deb
I didn't meen to scare ya... Keith there really isn't any fix up. just some nail hole fixes. this couple just want to move to florida asap....

Deb *I'm pretty smart but not that smart everything i've learned actually i've learned on here and alot of trial and error...lol but i think the key is to stick with it don't get mad get better ...... Thanks BigShem I'll have another Dilema as soon as i get back i have to step out for a few... i'll be on here tonight... Stay tuned, and happy investing

Offline trwill27

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Re:need help with ....
« Reply #23 on: May 24, 2006, 02:25:55 pm »
Does any one have a good sample of a contract to buy and assignment to sell availble so that I can get an idea of what I should include in mine.

thanks

Offline debmz

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Re:need help with ....
« Reply #24 on: May 24, 2006, 05:17:57 pm »
Hello, trwill,

Do you have a lawyer that you are working with? A realtor may also be willing to share a sample. I would also guess that you might find one online and then take it to a lawyer for him to check over. I am reluctant to send you the one I use because I don't want any problems coming back to bite me! Do some web research and question-asking to find what you need that works for you.

Best of luck!

Deb

Offline BigShem

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Re:need help with ....
« Reply #25 on: May 24, 2006, 11:50:56 pm »
I'm going agree with Deb on the lawer....

Offline BigShem

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Re:need help with ....
« Reply #26 on: May 25, 2006, 12:01:55 am »
Alright have another client  i got his house down using the formula you all gave me.... he went for it so bad that he through a 1955 chevy in with the deal.... okay keith stop drooling.....lol anyway i was thing of fixing this house up and flip it ,,, but now i'm thinking of maybe doing a rent to own with say 50,000 down. but i'm not quite sure on how to do this any help would be helpful... and would i be able to pocket the 50,000 grand and have the tenant pay the mortgage..... whats yer in put on this???????

Offline debmz

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Re:need help with ....
« Reply #27 on: May 25, 2006, 05:58:48 pm »
Hey, shem-

I think you  need a lawyer, too. There is really not enough information here to be able to help you out safely. What you are attempting is called a Lease with option to buy, at least that's what I think you are describing.

It depends on where your tenant/buyer gets his financing from and how much your rehab work is costing you. If you have paid all your bills and you have $50,000 left over, than have a great vacation or fun paying off other debt.

There just really are times when you must get legal help or you could lose all your personal belongings if you screw up. This business can make you a lot of money but if you get careless or are not educated well enough it can also cost you big time.

Best of luck

deb

Offline BigShem

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Re:need help with ....
« Reply #28 on: May 26, 2006, 04:05:34 am »
Okay Deb
the house i'm thinking of wholesaleing... after pondering a bit the cost to fix this house up real nice would be around 3500.00 or less  i was thinking of holding the property and help some one to do a rent to own,, now i never did this type of thing before i wanted to know has anyone every done a rent to own deal... i'm not the one who needs the rent to own ...... if some one gave me say 50,000 down would i be able to pocket the down payment while the tenant pays the mortgage and say a couple of hundred extra in the rent.... i hope i'm thinking this right can anyone tell me or am i missing something

Offline debmz

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Re:need help with ....
« Reply #29 on: May 26, 2006, 07:30:45 pm »
Hey, Shem-

I, as always, have several questions.

1. How much are you selling the house for?
2. $50,000 is a large down-payment unless it is a $500,000 home. 10%-20% down is what most banks require.
3. What you are actually looking to do is called Retailing because you are going to own the home while you rehab it; is that correct? Have you figured in all the expenses that you will incur- the Buy, Sell, and Hold costs? That house will cost you money as you work on it. Have you estimated what that will be?
4. Have you located any buyers that have expressed an interest in this area or particular home?
5. Have you done any website searches on "Lease to Own or Lease with Option to buy" as your search terms? Some of those sites are very valuable.
6. Have you contacted a lawyer to go over all details?
7. What does it mean when you say "ponder a bit?" Have you taken notes, done real calculations, and inspected the house yourself thoroughly?

I hate to sound like a broken record but as a retailer, you are stepping up the complication level and that means you need legal advice.

I can't be more specific than the above questions because each case is unique.

I do wish you the best!

Deb

 




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