Here's The Deal- What Next?

Comments(13)

• 
  fauche658th August, 2003

  CMA ??

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  NiKoLaS8th August, 2003

  oh i mean running comps - from reading a book on rei i read that cma is comparative market analysis (what homes in the area go for)

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  NiKoLaS8th August, 2003

  also, how would i find out what the current owner payed for the home?

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  way_motivated8th August, 2003

  what's your plan with this property? do want to wholesale it or keep it as a rental?
  
  
  as far as CMA goes, contact a realtor and ask them for some comps. are drive around the area in a 10-20 block radius to get a good idea of what homes are going for....

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  hibby768th August, 2003

  There are a lot of realtors out there who will get comps for you for $20 or so. Ask around or just call em and tell em you need comps on a FSBO.

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  NiKoLaS8th August, 2003

  i would like to keep it as a rental

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  NiKoLaS8th August, 2003

  is there anyway to get free comps? that 20$ would quickly add up on all the houses to look at. also, how do i find out the fmv? should i hire an attorney?

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  Joe_Investor8th August, 2003

  go to***Must have at least 5 friends to unlock***

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  JohnLocke8th August, 2003

  NiKoLaS,
  
  Glad to meet you.
  
  I use Message to Market in my sell ads, or match your advertising copy to who would be attracted to the property.
  
  In your case, my add would start out "FREE SHOTGUN" with purchase or rental of home if it turns out to be in a high crime area.
  
  I would not recommend you not purchase a property in a high crime area know matter how attractive you feel it may be. If this area turns out to be bad now give a little more time and you can change the ad to read "FREE SHERMAN TANK" with rental or purchase of home.
  
  Seriously, these type of properties properties can turn into an Albatross.
  
  Otherwise just do your due diligence, then let us know what you turn up.
  
  John $Cash$ Locke[ Edited by JohnLocke on Date 08/08/2003 ]

• 
  rei_cat8th August, 2003

  Quote:
  1) how do i run a CMA on it?
  
  Yahoo, domania, homeradar (add***Must have at least 5 friends to unlock*** to each) are some great sites to get comps for free.
  Quote:
  2)how do i find out its market value?
  
  Here in California, the market value is based on the recent sales in the area (usually a 1 mile radius) near the property. -- Since you plan on renting it out, there is a site you can go to that gives you the average rent to charge for specific areas. Send me a private message & I will give it to you. (I still haven't moved up in rank to post links.)
  Quote:
  3)if i found out that the area is known for crime, is there anything i can do that would make up for that?
  
  Ron Le Grand (guru) recommends "WAR ZONES" be kept as rentals. Just like what you are planning.
  Quote:
  4)since this would be my first deal and the house is FSBO, should i hire a real estate attorney to help me with the paperwork? could i hire an agent and if so, would that be a bad idea?
  
  Unless you are familiar with your state's contracts, I would go with an agent. Only disadvantage I see is convincing the owner to give up part of the sale of their house to the agent's commission.
  
  Good luck!

• 
  victorb17th August, 2003

  What I have done on top of using the online sites. As mentioned already drive around you will find some for sale signs around, and call the agents as a buyer. Get details on the property, neighborhood, and other comps that allow them to list thier property as they are. The take a look at the comps they have given, and verify the tax records.
  
  You can also get rental info from them, they should know the area.
  
  Use that as a starting - dont trust them completly.

• 
  jeff1200217th August, 2003

  rei_cat,
  You might want to look at the section that regarding War Zones again. In the Information that I have from Ron Legrand, he recommends staying away from them. He stated that he has owned property there, but not to invest there.
  Good luck,
  Jeff

• 
  AKlein17th August, 2003

  Quote:
  On 2003-08-08 14:00, NiKoLaS wrote:
  i found a seemingly good FSBO investment: a 3/2 for $104,500, 1 year old, because "we relocated - must sell". I have a few questions
  
  1) how do i run a CMA on it?
  Right now you'll have to pay an agent. Once you've created a relationship with an agent, you'll probably get them free.
  
  Quote:2)how do i find out its market value?
  That's what the CMA will give you.
  
  Quote:4)since this would be my first deal and the house is FSBO, should i hire a real estate attorney to help me with the paperwork?
  Whether it's your first house or your 50th, you should use an attorney.
  
  Quote:could i hire an agent and if so, would that be a bad idea?
  An agent's job is to find buyers for houses. You're the buyer and you've already found a house.
  
  Quote:also, how would i find out what the current owner payed for the home?
  Why would that make any difference to you? I paid $22,500 for my house. If you offered me $225,000 today, I'd laugh at you.
  
  You offer what you think the house is worth to you, not what profit you think the seller should be making. Can you make positive cash flow on $104,000? Then offer them $95,000 if it's a buyer's market, or $100,000 if it's a seller's market, but let them know it's an offer, not a stone monument.
  
  If you need a lower price to at least break even, make that part of the offer. "I'd like to offer you $104,500, but I couldn't even break even if I paid you any more than [5% less than you'd need]." If push comes to shove, your out is "Well, I guess I could carry the loss for a year or two."
  
  Good luck.[ Edited by AKlein on Date 08/17/2003 ]