I think I found a great fixer upper in Westchester Couny in NY. A great 1600sf corner property that needs a lot of work, but I am a visionary and see the potential. We can get the mortgage but don’t know how to find the money for the fix up. The house is a steal and will bring a nice return when renovated.
Where can we get the money? An equity loan in our own house???
Here is another great topic for REICLUB!
what I need to know!
Is the subject property FSBO (for sale by owner)?
What is the estimated costs of home repairs?
What is the value as is today?
How much can you buy it for?
What is the value after repairs?
What is the estimated time frame for repairs?
If Jimmy cracks corn and no one care’s why does he keep doing it?<— This has nothing to do at all with the Property I just was wondering!!!(personal question)
Good questions.
It’s not FSBO, it’s through a realtor.
Repair costs are unknown, as I just saw the property today and I don’t have an experienced eye. Kitchen and bath need to be updated (not terribly though), wood floors are in pretty good shape. But who knows what lurfs beneath the surface.
What is the value as is today? about $300k (guestimate)
How much can you buy it for? They’re asking $299,999, owner will accept $275k, so my initial offer will b $250k. House has been vacant for YEARS, seller is motivated!
What is the value after repairs? About $450k - $475k
What is the estimated time frame for repairs? I don’t know. Three months?
reoconsultants,
Because his master has gone away that’s why and apparently so has yours to ask that question. ;D
John $Cash$ Locke
Awsome!! That helps!
When you offer write it for $249,673.87 Or something off the wall I never write for an even number. This way people think that you really did your homework and they come back at a lower number HUMAN PSYCH 101… O.k. just ROBBOLOGY 101 it seems to work for me for the past 10 years…
Kitchen say $15,000.00
Bath Room say $8,000.00
Rest of house say $20,000
So $43,000.00 Sell it for $450,000 let’s say you get it for 270k that is a profit of $137,000.00 minus cost’s 20k so that is $117,000.00
And I know by now everybody is asking WHY SO MUCH in repairs and cost’s here is Robology 102 if you expect $157,000.00 and get $117,000.00 you will be upset if you expect $117,000.00 and get $157,000.00 you are thrilled!
Then you email me and say Robb that is so true I am so happy about your advice I want to get you a new MERCEDES and I fly out and drive home!!!O.K. so that is not going to happen!
as far as cash back why not write the offer for say 280k and ask for a repair allowance of $32,000.00
P.S. let me guess no news on the jimmy crack corn thing huh?
I also would like to add I tell people TO NEVER do anything to put your personal property in Jeopardy epordy! If anything goes wrong at least you can go home!
I like your idea of writing an “off the wall offer” so I think I’ll put in the offer just as you gave it to me: $249,673.87. You’re pretty clever if I do say so myself.
I like your numbers and they make sense. Somewhere in that $20,000 would be for landscaping because women like that when they walk up to a house. I’d rather err up than down for repair costs.
The repair allowance was a good idea. You think it’ll work? How does work at closing? They cut us a check? That would be awesome.
P.S. Jimmy cracked corn, but I didn’t care (so he went to my neighbor’s house).
You know MsBodley I only own 82 rentals as of today… It works for me if not there are other way’s around it… This is a State by State issue on how it work’s I bet. As far as New York I have never bought out there I will call my realtor buddy and find out tomorrow… And Yes you get a check!!!
82 rentals huh? Not bad at all. This would be my first deal and the way you’ve laid out the numbers, it could be sweet.
I have my addendum to the contract ready. Of course I have the contingencies on appraisal and general inspection to get me out if the repairs are ridiculous. Any other suggestions on how to proceed?
(I can’t wait to see the look on the realtor’s face when I present my offer of $249,673.87!!)
I was reviewing your email about the repair allowance of $32,000 with a purchase price of about 280k. How does that work? Where does that money come from?
Not really other then NEVER put your own home in Jeopardy or use your equity to do a business venture! If you have to use your own home it is simply not worth the stress!
Other then that everyone knows what I am going to say but I will say it anyway!!!
DO WHAT YOU DO BEST!!! OUTSOURCE THE REST!!!
Thank you $cash$ that was a good answer you know I have questions to!!!LOL
Offer $282,643.34 with a repair allowance of $32,643.34 brings you to 250k!
Ohhhh, now I get it. That is EXCELLENTLY clever!!! I would have never thought of that and that should cover the rehab costs. I will use some off the wall numbers for the asking and repair allowance. I can’t thank you enough, as I would have not thought of this on my own.
Do I need to have specific wording in the contract or addendem that makes it clear that the “repair allowance” is payable to me and not collectable by seller at any time or is that assumed?
I like this idea a lot and don’t want to be surprised by the seller expecting me to pay either now or later. You gave me a great idea and I think I’ll work out one or two counter offers and repair allowances just in case.
This just might work! 
I’d be interested to hear in depth about this subject. What are other options for cash back at closing on properties that don’t need repairs?
Bill
REO,
You’re a genius. When is the book coming out?? I want the first copy!
Immy
OK here’s the thing. I’m trying to arrange for financing so that we’re ready with our mortgage. When I told him about the brilliant idea of offering $280,000 with a $30,000 repair allowance, he said “And who’s gonna give you that?!”
With that attitude, I terminated the call and will end all further dealings with him. Why should we have a problem getting a $280,000 mortgage on a house with an after repair value of about $450,000 (easy)? We have good credit, steady jobs and a six figure family income and I have no time for negativity.
We’re just gonna go straight to our HML where we have accounts and get a mortgage. Any other suggestions?
HML is going to have higher rates on the other hand there is a good amount of equity in the deal! Call them see what they offer! Let me know… Robb
Thanks Rob. You know I will. You have been great! Let’s hope they accept my offer and things work out as planned. I’ll keep you posted. You’re the BEST!!!
;D