Newbie Needs Help With 1st Buy
Property is bank owned. listed at 69.9k. I checked the property appraiser site and the MV is 101k. I was told to guess it would apprais at around 115k. I will still have one done, but i feel i really need to jump on it before somoe else gets it. Must buy As Is.
What to do?
Slow down my friend!
You need to do a title search first, you need to get some sold comps like your property over the last 90 days 3 to 5 would be good, you need to inspect the property just for starters.
How long has this property been on the market?
[addsig]
been on the market for a month i believe. The comps are good, had em looked at today. most come in around 115k some at 130k. Its double the size of the houses byit. but it did have some comps to compare to. hadnt thought of a title search, i'l get right on it after i have it inspected.
it is to sell 'as is'. i will definately check for any additional leins. thanks
all for not, as the roof problems were extensive when i inspected it today, so i wont buy. the comps were good and there is some equity in it but not for the trouble. thanks anyways for the replies.
Call the listing agent and put in a bid, what's the question here? Is that the MV after repairs? Do you know how much in repairs it needs?
[addsig]
JohnMichael - why would you do a title search prior to an offer, especially on a REO? I thought the bank had to deliver a clean title at settlement.
thanks in advance
Take a look at this link:
http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=40354&forum=18
It's like buying a car and never taking it for a test drive!
Most REO's are sold as is where is!
Many are sold giving you title or deed to the property but still subject to other liens.
You said I think it's been on the market 30 days, have a realtor run a search on the property address not the MLS listing number and you will know for sure!
[addsig]
My only advice would be to do an interior and exterior inspection. Look for roof problems inside the home, because a new roof is $3k+, and other property defects. Because I am a Chicagoland RE investor and a property with numbers as you project them to be, would not be on the market longer than 5 days, unless there is some defects with the property and the cost to cure leaves on room for much profit. Also as stated previously by another investor, get 3 to 5 comps, within a .5 mile of the subject property, that are EXACTLY like the subject property, because otherwise your numbers you are coming up with can deceive you. Because on my first deal I was planning on going hard money and purchased an REO for $87k, thinking it would appraise for $150k due to me using properties that were within a .5 mile from the subject property but all were not the same style home as the subject property, and I had to go conventional to get the deal done, because it only appraised out at $125k. I still made a nice profit, because the property only needed $4K worth of work, but I got very lucky.
JohnMichael --> Thanks information is well appreciated.
How does a rehabber do a title search anyway? What is the fee?
[addsig]