First Rehab Project... I Need Help Fast
I live in Las Vegas. If you are not familiar with the market, condos out here are selling for a minimum of $125k and houses are at a minimum of $200k.
That said, I found 4 single family homes that are boarded up. 2 of the sellers live out of state.
I did a little research and these are the last sale prices on these houses
#1 $62,926
#2 $112,000
#3 $67,500
#4 $65,000
I have my own company, Fortson Enterprise, LLC. I was wondering if I had my girlfriend make an offer on the properties, could I get money at closing transferred to my company for the rehab?
Does anyone have any suggestions on how to get into these properties with very little to no out of pocket expenses.
None of the houses need a significant amount of work as far as I can see from the outside.
I used to think that the last sales price was a good tool to judge what a seller would agree to on price until I learnt that most sellers with a lot of equity will usually have a second loan on the property and this greatly affects their wiggle room. In Las Vegas, the market only appreciated much in the last few years meaning that most sellers will have a pre-payment penalty which further impacts their ability to sell.
Have you considered all of these in your numbers to be sure that you have a deal? What are they asking and what wre the comps. in the area?
Thanks.
JS
What help are the last sale prices w/o the dates?
None.
Jim
Those prices may have been from years ago even when the houses were still “pretty”.
You also state “None of the houses need a significant amount of work as far as I can see from the outside.” So it appears you haven’t even looked inside, you may be in for a few major surprises. I would never pay that high of a price without at least looking first.
To give you an example of what I am talking about, I just closed on a quarter acre corner lot in Las Vegas, with a boarded-up house, without looking inside, but I only paid $20,000 for the deal.
John (LV)