OK - here’s the deal. Put a posting on craigslist about investing in San Antonio as I have relatives there, but live here on East Coast.
Got a reply today –
I am selling my
home because of a loss of my spouse’s income. The home
is appraised with Bexar County at $246,800; which is
generally 10-15% lower than market value.
I would like to be out by end of October and am willing
to sell at $233,000 with no agents involved. The house is
at xxxxx xxxx-xxxxx in a 24 hour live guarded subdivision.
The lot on my property is the biggest in the neighnorhood
at .91 of an acre. Most are .25 of acre. The house is
2169 sq ft with 3BD/2BATHs and a study/4th BR. The house is
in excellent condition and is a custom built home. It is
100% stucco with a concrete tile roof.[/i]
I am in the process of trying to talk with the owner and get more information, pix, etc.
My biggest problem, obviously, is distance and the fact that I have no idea about the TREC contract or anything like that. I might want to hold for rental/lease option if the numbers worked, but more than likely will want to assign and be done with it if I can get him to accept numbers that work for everyone. Could be a sub-2 as well - are they legal in Texas?
Any advice would be appreciated - TedJr, Ou etes-vous? (that’s French for Where are you? - had to throw that in there since you now know what “facile” means!)
Anyone interested? Email me direct with a PM and I’ll be in touch.
I do not like to be a nay sayer but you have to look at the risk reward to REI. Is it worth it to put yourself into debt for $233,000 plus closing costs to possibly make 5 to $10,000. This is a no brainer to me. The answer is in the number IMMY. In Balt City, as we talked on the phone some weeks back, you can make that while only investing less than $50,000.
Stay focused in your backyard where there are many deals.
I wouldn’t pay 233K for the house, the price would definitely have to come down. If he’s really motivated, then we have work something out, if not then it’s on to the next situation.
Baltimore City seems to be a gold mine for those who already in the game there. I have spoken with someone who has rehabbed there previously and is willing to mentor me through the process. The problem is the good deals are gone before I ever get wind of them. I’ve run a few I’ve seen posted here and there by him and he has clearly laid out the very valid reasons while they are not snatched up yet by experienced investors such as yourself. I don’t want a turnkey deal ready for rent and there seems to be plenty where a company has already bought houses/shells and is ready to assign the contract for basically a full blown (expensive) renovation - the profit margin is very slim on paper to begin with.
I’m not trying to make excuses but it is what it is. Competition there is extremely fierce.
Jenesaispas. That is about the only French I remember from 2 years of highschool. That really sucks.
I agree at $233K the deal sucks. I am doing duplexes for $50K that rent for $900 per month all day long. This guy does not sound that motivated to sell but you never know. I would look for Fannie Mae and other foreclosure types. A lot of HUD deals are off the market is the rumor until Katrena folks get some shelter.
The guy is 3 months behind in his mortgage payments and says he is working that out with the mortgage company. His spouse lost her job that is why they want to sell. Wants to be out by end of OCtober. the total is $212K with the late payments. says he needs $20K to make it work but I would get him down on that number.
Any advice? I haven’t talked with him yet with that Hurricane moving in, he emailed me and said he’s got relatives coming to weather the storm so I’m figuring I’ll call him after it passes and see if there is still a house to work with.
I’d assign it - anyone investing in San Antonio that would do a sub-2 at 80% FMV? He said he’s been there 2 years, before they bought it is was rented at $2200/mo. Houses in other close, live guarded entrances (like his neighborhood has) go for $400K and up.
I had an investor who buys high LTV by doing sub-2s and holding for 3 to 5 years, and giving equity dollar for dollar to the seller, make an offer but the owner passed. Needs to cash out now. Oh well, at least I’m working the business!