i’m looking at an REO currently.
These are all tax assessed numbers:
land value 35k
structure on premises 60k
offered by bank for 35k
it has been through the bid process
realtor listing property said, and i quote:
“you’re buying this for the land i presume. the structure is not the value here.”
do i presume that the building is shot?
it’s on 3 acres. i checked recent sales and they look very promising. i’m thinking of making this my first deal - buying it cash and just trying to sell it quick for cheap, while i make a 50% return on my money.
i’m thinking little or NO improvements to the current home on the land.
i’m flying to this location maybe thursday (any hints for travel? currently found a price of 125 but airport flying into is 2 hours away)
seriously, this is it.
i have much more info on the property as well. bank is guarenteeing clear title - i called tax office, taxes are current and not due until september 06.
I’d save the airfare and look for investments in your own back yard. With REOs, banks almost always start out trying to sell their property at retail. Obviously, the bank only thinks this thing is worth $35K, which means that it is probably really worth quite a bit less. Further confirmation of this value is the comment by the realtor. If the realtor thought that they could get more, they’d be asking more. If this were a good deal, someone would have probably bought it at the foreclosure sale.
yes, which is my original thought.
the comps for sales in the immediate area look very good in comparison to what the bank is asking. seriously
we’re talking recent sales on similiar 3 br, 1 bath homes with LESS land with a low of 77k and high of 143k within .46 miles
THIS IS a mobile home though…
the bank is selling THE LAND…which is why i want to take a look at the structure.
Bank that owns it:
Federal Home Loan Mortgage Corp…
does this change things?
My guts tell me this is an okay deal, not a 100% percent return, but somewhere around 30 to 50% return I would think.
On Realtybid.com - this prop’s highest bid was 25k…all turned down by bank. but these bids are put in by people who probably NEVER looked at the actual property.
I guess I don’t understand your thinking here. The bank and the realtor are basically telling you the mobile home is worthless. You are comparing land with a junked trailer to a 3 br, 1 ba house. How does that make sense? Are you planning to build something? Are you hoping that the mobile home is somehow a house? I don’t get it.
my thinking is i don’t know anything really until i’ve seen it with my own eyes.
200 for a rental car
one day trip there and back
“in my own back yard” any foreclosed property will cost me…ohhh. minimum 250k
I have the cash to purchase a 30k property, not 250k.
i don’t believe the mobile home is a house - it’s a mobile home with a tax appraised value of 60k, even if it’s wrecked - i have to see it in order to determine if it can be rehabbed and determine cost - with as LITTLE work possible. If it’s completely destroyed, I pass, but at least i see it.
any recommendations for inspecting a property other than what a guru says?
In actuality, the value of land with a worthless structure on it (building OR mobile) is:
Land Value - demolition/removal = true value
Also add any costs to return land to useable condition and the cost to remove any hazardous materials (buried fuel tanks, etc., etc.)…
Not to be a “doom and gloom” type but if you’re not looking for vacant land, then this will probably be a ‘bust’…most REIs are not looking for vacant land because it will rarely create an income stream.
what would you consider a property that is worthless built in 1995?
obviously, no local rei has invested in the property which of course raises some red flags - but what if you were doing all the work yourself, no contractors at all.
what is a worthless property - again built in 1995?
I’m not saying it has to be bad…I’m saying don’t get your hopes up too high and be realistic…you might just stumble on a rough gem that just needs some help. I have. You might have “vision” that others just don’t see. The last one that I bought was like that…the Realtor thought I had lost my mind and my wife was wondering herself…but it came out great! You can buy the really ugly ones cheaper than you can the real ‘purty’ ones!