Found My Possible First Deal-HELP!!!
Hi all!
I found a house- here are the specs-
FSBO- sign on lawn put up yesterday, not advertized yet, owner asking $52,000, on two lots valued at $45,000 each, house market value $65,000. 3BR, 1ba, pool, pool room, fireplace hardwood floors, on main street in decent area, 2 car garage...somewhat commercial area, needs paint and some paneling in basement replaced. Is this a good deal? Should I put it under contract for a quick flip to a rehabber or do the work myself /hire someone or is it not a good deal and I should pass it by? 
One thing I would look into is seeing if you could divide the lots and sell one off. Otherwise, it doesn't look like that much profit to me.
Ok let me get this straight, your post is a bit confusing, or I am muddled this morning.
You have two lots valued at 45k each, and a house valued at 65k and the guy wants 52k for the entire package?
If the answer is "yes" then my question is what's the catch? I agree with the previous post, contact the city/county/whatever and make sure the other lot can be split off, additoinally make sure the lot is SALEABLE. Does no good to split the lot if you can't sell it.
[addsig]
Thanks for the reply. I am going to look at the house this afternoon with a local investor/rehabber. He is experienced and knows the laws and what not for the area. He agreed to help me out and I told him I would be happy to split the profits since my main goal is to learn right now. I spoke to the owner, an older fellow, last night, and it actually sounded like he said $152,000...therefore not a good deal. He was difficult to understand and I asked him a few different times for the price in different ways. If the lots are worth $45K each and the house is worth $165K, and he is selling it for $152K, if I could sell the other lot for $45K and if it is just cosmetic repairs, is it worth it? Are you all laughing at me???LOL At least I am driven! Thank you all!
I don't think that 45k would be enough to make it worth while. You are going to have holding costs, rebab costs, closing costs, and possibly relator costs. I would be in the 140k range. Try to sell the repairs/upgrades to be more than they are, most folks don't have a clue as to what these costs actually are.
[addsig]
Quote:
On 2004-01-14 09:14, Scarlett wrote:
Thanks for the reply. I am going to look at the house this afternoon with a local investor/rehabber. He is experienced and knows the laws and what not for the area. He agreed to help me out and I told him I would be happy to split the profits since my main goal is to learn right now. I spoke to the owner, an older fellow, last night, and it actually sounded like he said $152,000...therefore not a good deal. He was difficult to understand and I asked him a few different times for the price in different ways. If the lots are worth $45K each and the house is worth $165K, and he is selling it for $152K, if I could sell the other lot for $45K and if it is just cosmetic repairs, is it worth it? Are you all laughing at me???LOL <IMG SRC="images/forum/smilies/icon_lol.gif"> At least I am driven! Thank you all!
Hello Scarlett,
No one should be laughing...you just misunderstood what the guy said...but I would put it under contract and find a motivated buyer, if you don't already have one. Put them in it on a L/O and go from there...Part out the lots and make a decent profit on them as well. Good luck
Stupid question, but I have to ask:
Where do I find a motivated buyer that isn't an investor??? Would an investor agree to a lease option? I, since I am just starting out and young to boot (20's), don't have any $$$ to put out in advertizing. The investor that is going with me is one who put out bandit signs "We buy houses for CASH!!!" Thanks for the advice folks!
-Scarlett
Well you could run an ad like
3bedroom/ 2 bath home
No bank qualifying - call 555-555-1234
See if that works..Also, there are some great ads posted in the Marketing Forum here on the site. Check them out and if you need some more help, pm me and I'll help ya. ok? Good Luck!
So you think I should offer owner financing maybe as a L/O? I can't PM on this computer...sorry!
I posted this in another thread:
Thanks, that worked great for the residences. What about businesses? I encountered a problem there...I appreciate the help! That house I was talking about for $152K where the owner said it was worth $165K showed up for $109 as lowest and $159 as highest. Of course now it has a pool, a garage and the extra lot worth (he claims) $45K.....is he being too shady?