First I do have a guy who helps me when he has the time. However he doesn’t seem to have the time. So I am farming my area today, when I catch a family loading up the biggest moving truck I ever saw. So I just stopped my car and asked the young man were they selling the house, he said yes.
So I asked the price he said he had to ask his mom who he couldn’t get on the phone. I asked why they were selling he said the were MOVING to West Virginia. I live in Tampa, FL by the way. So immediately my gears got to cranking and I got a little excited. So I left my card for him to give to his mother to call me. He said he thinks she wants 250k, he is either mistaken or she his smoking.
Nevertheless unless my mentor calls before she does, I have no idea what to say, how to get the pertinent information out of her. What should I ask her to find out if I have a deal?
All man, she did end up calling… she is moving tomorrow , she lived there for 17 years, but refinanced 4 months ago. She now owes 217, she believes it is worth 275, the comps range from 223k, to 282k. She is asking 250, but she will never see that. I don’t know what else to do or ask, I told her I would call her back 10:30 pm Est tonight to let her know if I could help her or not.
She said it needs carpeting, and painting. The roof is new, and she had it 90% remodeled. Any temporary mentors in the house?
Well, so far it is not a deal. Your comps are all over the map, so you need to do better job at figuring out how much the house is worth. She sounds like she wants to retail it. Did she sound motivated at all?
I would ask what is the least she would accept and how was she planning on selling it. She will say through a realtor, and using that, I would remind her she would need to pay the 6% commission, the 3% closing costs, the payments on an empty house. All that would add up to $25k to $30k. Why not discount that from the price and sell it right away.
I appreciate the reply. I contacted an investor who believes its possible to make some money on this deal, so he is going to handle it from here and pay me if it is a deal. It just really sucked not knowing what to do when a motivated seller fell in my lap. But those are the breaks. I will not let this happen again I know that. I hate depending on people to help me out. Anyway enough venting, thanks fadiz.
Well, that is part of the learning process right? No one started by being good. I had so many people hang up on me, or in the middle of justifying my offer I ended up showing they actually could make more money by not selling to me because their expenses were not much at all
I just thought I would follow up, a fellow investor ended up getting the contract, paying the lady 2k, flipped the contract to an investor he knows. The contract was for a sub to, and apparently the lot is big enough for him to divide it so he will make it two lots, with one being vacant. I got $500. Not bad for 2 hours worth of work.
