Hey everyone, I want to say thank you to REI club for being a valuable resource. I have been researching REI for about the past 2 years and have really started to put things into action over the last 10 days. I have possibly found my 1st deal. While browsing on the internet I found a random classifieds ad and clicked on the Real Estate link. I found a house that said, “176,000 Handyman special”, I kind of brushed it off for a couple of days and today had a feeling like, “what am I doing??? this could be the one!”, so I got in my car went and looked at the house, called the owner and talked about the house. Long story short he bought the house in 1999 with his wife, they got a divorce, he has rented it out since then and has had a rent-to-own over the last 2 years. His tenants have opted to not buy the house and he just wants to pay off his mortage and move on with his life…sounds motivated right! A house around the corner is listed right now at 225,000. The house needs only cosmetic touch ups! So it looks like $40,000 or so in equity! I called an investor friend of mine and told him about the deal and we are going to look at the house and hopefully make an offer on Sunday. I may only make a small finders fee, but the experience will be more than worth a dollar value. I will keep everyone informed.
That sounds great, but don’t assume that just because a house is LISTED for $225k around the corner that your house would sell for that as well. Do your homework. Get some SOLD comps in the area and take the low end of the average sale price to base your equity.
That’s great that you’ve possibly got your first deal - good luck!