Guy called me and has a house for sale for 40k. That price is unheard of. I zillowed (I know it) and got 104k. Thew utilities are all on and I believe someone recently lived there.
I made a huge mistake by telling the guy to call me after the guy who comes to see it on Sunday makes an offer or not. I know why this was stupid so I don’t need to hear why. I am supposed to compete ofr it and it I continue that passive attitude than I will never find a deal.
I was thinking that if it does not need a moajor rehab then get a contract signed and call my realtor to get him to give the value and updates it needs. My buyers list is small that is why I am cautious.
What do you mean how should you play this? Find out what your realtor thinks its worth then get over there and make an offer. Why are you waiting for strangers to tell you what you know you should do?
Because if I only have 5 buyers it is a good chance I won’t move it and waste the owners time and mess up the reputation I am trying to build.
They way I am doing it is this: I have an investor friend who I trust. I am feeding him all the info and as soon as I know if it is a dealor not so will he. If he wants it I will get it under conctract with 1/2 hour. This way I don’t look like I don’t know what I am doing.
Plus I am nervios and not confident, that is whay I asked. I am taking action not matter what advice I got here.
This is very easy. Get the owner to sign a sales agreement for the $40,000. Give YOUR attorney $1000 deposit held in escrow with a 45 or 60 day closing (whatever the owner wants) Forget your reputation at this point, that will come later. If the comps you mentioned are correct, take a weekend ad out in your local paper, list the house for $80,000 which will be $24,000 UNDER MARKET. YOUR PHONE WILL RING OFF THE HOOK, (assuming your not in Michigan) Selling will not be your problem believe me.Then you simply have a double closing and magically your $1000 deposit has grown into a $39,000 profit. All while risking $1000. Remember you CAN walk away from a deposit, you may or may not lose it depending on the sales agreement and owner. Either way ANYONE can recover from a worse case $1000 loss.
This is all irrelevant until you know what the rehab costs are. If it needs a major rehab, it may still not be a deal. On the other hand, it could be a GREAT deal. If so, the other investor probably already has it under contract.
When something comes along that sounds like a great deal, I drop what I’m doing and go look at it NOW! If it looks like a great deal, I put in under contract on the spot.
Don’t beat yourself up. However this turns out, it will be a good learning experience and absolutely FREE! You’ll get it right next time.
I would also suggest that you LEARN your market so that you won’t need comps. That is a huge advantage and mandatory, in my opinion.