Italked to a guy who has been trying to sell his house for at least 6 months. He wants $169,000 for it (he’s a 70 year old whi buys about one house per year, and he basically said he’s to old to look after properties anymore, plus his son who was living in the house moved out.) I did some research and found out that he paid 130,000 dollars for the house in 2000. i figured the least i might be able to get it for is about what he paid for it 130ish. The house is in excellent condition. With 40,000 dollars in equity to work with could i wholesale this? Or even if i bought it for 145-150,000 might i still be able to make a quick 3-5 grand.
P.S. We also discussed a lease option. He wants 4,000 down and about 1,200 a month ( i don’t have 4,000 dollars though) but if i got the contract might i be able to also flip that for some quick cash?
I’m a new investor and any and all advice wouldl be appreciated. Thanks in advance and God bless.
It sounds like he is an investor (of some sort), so guessing to get it for what he paid for it 5 years ago probably won’t fly, but you can ask.
What are you investors looking for? 60-70% FMV?
Being you talked about L/O, has he said a actual sale price, all cash offer?
What about him holding the mortgage for you? Work the terms in your favor. ie. $460 a month for 360 months.? (he may not go for a 30 yr loan, but you get the idea) Hint look closely at these numbers.
From what i can tell the price is pretty decent. Houses in the area (not far from where i live) of that size are running about 160-170ish.
The investors i’ve talked to are pretty standard, depending on deal 60-70% of FMV. But i figured since the house didn’t need any repairs that i could flip it, if contained $20,000+ in equity. This is because I’ve heard the average rehab in this price range usually nets between 20-40 grand so i thought it would be an equal value without the repairs and work.
As far as lease/option…truthfully, when he said he wanted 4 grand down i got a little turned off, because i figured even if i get a tenant to cover the down payment it would be not much over 4,000 and i didin’t want to risk being stuck with a property i cant afford.
To clarify my position, i’m a 21 year old college student (people say i look 25 though, which i believe will work to my advantage) i’ve been readin up on and studying real esate investing for about 1 1/2 years now. I have my patlive answering service, i’m starting to put up wanted signs and I’m one of those people who never quit. BUT I’m kinda poor (typical college student i guess) i have a job that i wanna get rid of ASAP.
Basically, I’m trying to wholesale for some cash first and forever really, then i can have the capital and means to pursue other avenues in real esate. So should i just stick to beat up properties. Sorry for being long winded its my first post. THANKS!
Congrats on getting started early…I wish I had started sooner.
Give some of your investors a call and explaine the situation, they might go for it…never hurts to talk to them.
Be careful with no repairs, get the age of the roof, water heater, HVAC, etc…
Once you have those and talked to know what your investor will take, run your numbers. *also run the numbers as if you were the investor who you are trying to sell it to. Don’t forget holding costs (unless he wants to rent it, then include rents in the area also).
20K can get knocked down quickly, but it will be a great teaching lesson if nothing else.