L/O In A Bad Neighborhood?
I am a beginner and had a lady contact who wants to sell immediately but she lives in a pretty bad neighborhood and house needs lots of repairs.
Any comments are welcome and appreciated?
Thanks
[addsig]
bad neighboorhoods are not for everyone, but if you are comfortable there, and able to get the repairs done, then you'll have a significant advantage over most other investors.
If I'm buying in a "bad neighborhood" I make sure i have plenty of 'bonus' in the deal for me - after all, greater risk = greater profit POTENTIAL..
Try to get yourself enough time to make sure you have a good handle on the rental market in that neighborhood before you take title.
Thanks feltman,
Good points!
Not enough profit in this one for me to take it.
[addsig]
if i fell uneasy being in the n/b i don't buy. i buy or l/o in middle class n/b's it's better for me all around..km
Thanks,
Just what I needed to know. Now just to get to those neighborhoods. My ad in the paper seems to only attract the bad neighborhoods. Need to figure out a way to market in the good areas.
Anyone have success with signs? Can you put them on state roads?
[addsig]
theadams, have you considered a short sale on this prop? I just took a prob sub-2 with 42k payoff in a bad neighborhood, trying to short the payoff to 17.5k, the BPO should come back at 20-25k and hopefully will get accepted. At this price I can flip it to a rehab guy for around 30k hopefully. Have a contract buyer for 43k but do not want this much cash out of pocket on this deal.
Quote:
On 2004-11-24 01:13, theadams5 wrote:
Thanks,
Just what I needed to know. Now just to get to those neighborhoods. My ad in the paper seems to only attract the bad neighborhoods. Need to figure out a way to market in the good areas.
Anyone have success with signs? Can you put them on state roads?
you have to go though the thorns to get to the roses. or set a price range in your add.........km
A bad neighborhood to me is "home" to lots of people. Investors I work with (as retail buyers) always want a cheap house in a good neighborhood, which cracks me up. "Bad neighborhoods" are where renters live, and you're looking for rental property, right?
I've had good luck with a direct mail piece--a full-color tri-fold mailer. I mail only to those properties that are above a certain value threshold, and in neighborhoods I'm not frightened to enter at night.
One of our local process servers also hands out my brochure. She says an attorney told her she is legally allowed to hand out information IF the person she's serving asks her for advice first.
Jules
FLA-Realtor,
Thanks for your input. Not looking for a rental though, only looking to flip properties.
Oh, and BTW this property's location is in an area where I did not feel safe at all.
Being a female and doing this only PT, think I'll pass this one up.
Lynn
theadams
) and pass along that info for a little networking and some moolah
You need to be making money off everyone that calls. If they are in a neighborhood you do not want, take their info and find yourself investors that do buy in those neighborhoods (like me
[addsig]
Yes, that would be nice. Unfortunately, don't know many in my area that are doing the REI, not yet anyway. Am trying to start a REI club in this area. Thanks for pointing out the idea of somehow making money or contacts off this one.
Lynn :-D
[addsig]
I'd still say go for a short sale. Just sub-2ed a prop. FMV: 35-40k(needs repairs)
Owed: 42k
I thought FMV was in the 50's or 60's until i realized all of the repairs i hadn't noticed before. So I decided to short sale
SS offer: 20k(bank netting 17.5k)
SS counter: $25k(me getting a $1000 realtor commission)
Going to accept and flip for a few Gs.
Was a very easy SS. I think BPO came back at 25k, probably, i could perhaps negotiate another thousand or two but I like the saying that someone said on this forum once before, "Pigs get fat, hogs get slaughtered"
Quote:
On 2004-11-26 22:40, theadams5 wrote:
Yes, that would be nice. Unfortunately, don't know many in my area that are doing the REI, not yet anyway. Am trying to start a REI club in this area. Thanks for pointing out the idea of somehow making money or contacts off this one.
Lynn :-D
How did you SS the bank? Was the owner behind on payments?
[addsig]
Yes. I've never tried, but, I don't think they would necessarily HAVE to be behind on payments to short sale. It might be a little more difficult for the bank to do it in a timely matter, though.
Quote:
On 2004-11-27 01:20, theadams5 wrote:
How did you SS the bank? Was the owner behind on payments?