It seems I may have found a property through my business. A man called up for an estimate to paint the interior of a house. It turns out his mother passed and he will be doing some very minor improvements before he sells it. He lives out of state and will be listing the house Aug. 1st I figured this might be a great opportunity to get into the game…
I checked the place out ( exterior today, interior tomorrow) and it looks like it will need a basic rehab and not much more. I could see a exterior paint job , minor landscaping a few shutters et al. On the inside ( haven’t seen anything but the 70’s looking shades) I’d expect carpet, kitchen, and paint.
I did a little research on the area and found that the same model Cape Cod was sold down the street for 329K. I’ve seen pictures of that house and while it has a finished basement and other amenities I don’t see how the house I’m prospecting could go for any less than 310K after 15k in rehab.
I’ve contacted mortgage lenders but their options don’t seem palatable.
I know a commercial investor who is willing to offer 200,000 and a 30 day closing but I think the offer is too low and may end all discussions or possible negotiations. The owner claimed that an agent would list his house at 289K but I don’t think it could sell any more than 260K, with an agent.
That being said, I was thinking of making an offer of 245K and going through a hard money lender. The problem is I can’t find one in New Jersey. Does this sound like a decent proposal? And where can I find an investor. The commercial broker I know seems to want a huge profit, and isn’t too interested in small gains.