I got a great offer. I can purchase a place that have already been gut rehabbed AND have tenants that is paying rent. :shocked Furthermore, I get a warranty the 2-unit :deal , yep I warranty. I didn’t knew buildings get warranties, but I guess they do now. Also, the best part of this is, the place already have positive cash flow. Also, another good part, I can get brought out for several thousands. No skin off my back. Two words, Cha and Ching. Yes, I am fluent in Chinese.
Hell my parents wouldn’t even do that for me! :rolleyes
Does any one know the name of this type of whatever it is, is called?
How does it benefit the seller?
What is a warranty on the buidling? I can get brought out, what does that mean?
How does a building get a warranty?
If you know more, please tell.
It benefits the seller because most likely you are not negotiating the price because you are so THRILLED with the deal.
Who is going to buy you out? The tenants? If so I would look very closely at the deal they were offered and make sure that it is a good deal for you. Look at it this way…If it is such a great deal why are they selling the property?
Most likely you are getting a home warranty. I can tell you from experience that most if not all home warranties are a scam. Whenever you call them the response you get will be “sorry that is not covered” or “we only cover a portion based on the age of the piece of equiptment being covered”.
Aikin,
Are the units in your town? Have you SEEN them? It is possible, but give us the numbers. People will help you analyze this “good deal”. We can help you, and we’ll be happy to congratulate you if it still looks good. We’ll get your back.
It could be that maybe the seller is moving out of town or just doesnt want to bother with it anymore i guess… unlikely… so ide deffinetly be cautious.
Home warranties generally don’t cover damage done by the tenants. Neither does the insurance.
As far as a turnkey deal where there is great cash flow - YEAH RIGHT! :rolleyes When someone else is doing the work (finding the deal, doing the rehab, managing the property, etc), THEY ARE MAKING THE MONEY.
Post the numbers and we’ll give you the REAL analysis of this property.
The crux of this deal is how much do they want you to pay for it. The actual retail value of the property versus price they want you to buy it for are the keys. If you had access to the actual retail value of the property you will probably be paying right at that value or above. In most markets it is impossible to make money buying properties at market prices. There are tool that usually realtors have that can identify want the retail value of a property is. Most realtors have do idea how to use these tools to determine what that value is. When I say most all the ones you know and all but 1 of the ones I know.
That is actually a really good deal…for them. Buy a property at reduced prices, fix it up and sell at retail to an investor and pocket the spread. A twist on the classic flip. Since natural buyers are afraid of these times, and all these flip this house or flip that house shows on TV have amateurs wanting to do “real estate” they are going to use these wannabe investors as their market. Just like then classic flip uses wannabe homeowners as their market.
If you are talking about reowholesaledirect.com, I dont know if I would rush into that. It seems to be too good to be true if an outfit is selling positive cash flow properties for less than they are worth. I dont understand why they would want to do that. Plus all of the properties are in Detroit or around the midwest. I would prefer to start out with properties in my area. Plus they seem to be more of the pushy salesman type.