What Should I Do?!?!!?

General Real Estate Investing
1

Hello,

I’m having some trouble turning FSBO Leads into Deals. Please post anu ideas on how I should make some offers. Here are the details on 2 SFR. These are 2 different owners. NOTE: This is CA.
1ST PROPERTY:

House is Comp’d for around $410,000.00.

Seller Is Asking $388,000.00

Home Is Paid Off & Was Built In 1990.

Last House That Sold In That Area Was 4/17/2007 For $380,000.00 but comp for only $387,000.00

Seller Is Willing To Carry Back & Will Provide 1 Year Owners Warranty.

Other Houses in the area recently sold from 380,000 - 455,000.

2ND PROPERTY

SFR Com’d around $813,000

Seller Is asking $750,000

Owner Says last year property comped for $795,000

Seller Says He Owes $350,000 on the property paying $2,900 a month with a 8% rate.

The Last House Sold In The Area Was Sold On 4/20/2007

Owner says the only thing needed to the house would be a good carpet cleaning possible new carpet if I wanted but he says if I decide to get new carpet he’ll help with it. House does not have central Air & Heat but has an Wall Unit.

Seller says he wants to get rid of the house ASAP. He admits that he was behind 2 Months ago but is now completely current. This is one of the biggest houses in this neighborhood.

How do you guys think I should proceed with these.

Thanks in Advance,
QBS

2

What are you wanting to do with these properties?

3

First deal is retail, forget it.
second deal may be close to retail, how long on market so far. How motivated is the seller?
If highly motivated you have some good options, Darin

4

I am looking for the best option. The second I think would be a good wholesale property, because it needs a little upgrade. The seller would be willing to go lower.

The first is also willing to go lower. That property needs no work.

5

I passed on the first deal however, the seller called me yesterday and is willing to go lower. I think the least he’ll take is 350 or 360. I say that because he cotinues to say how a property almost 1000SF smaller sold for 340. This seller is very motivated as his houe he had built is now finished and is ready for move-in.

As far as the second home goes, that seller really wants to get rid of the home.

6

Good Morning QBS,

You may want to consider leaseop on first if payment can be sold to produce you cash flow. You say paid in full on first. Make him an offer that works for you. A contract that you could sell,lease op that cash flows, or wholesale purchase and resell. What are you capable of doing as far as exit strategies ? Your comfort level ?

Go for it, Darin

7

I’m really wanting to do wholesales. I’ve nevr done a Lease Op before so i’m not as comfortable. I really want to do something where I wouldn’t have to use my name or credit.

8

Ok ,
Make him an offer low enough that you can quickly assign at wholesale price.

9

Make sure you have an assignable lease and a prospective buyer , always helps to assign it quickly. :beer

10

750k for a house w/o central air? What part of Cali are you in?