Probate Deals
does anyone have any information on doing probate deals? This is what i would like to do, starting out in my investment career. I dont see any info about anywhere! I know $ can be made in this area---- So can someone help me out here?
TP,
A Realtor here. Was the agent representing both sides?
IMHO – Each deal is different. First ignore the asking price. Market price is what someone will pay, not what someone wants.
I would be looking at additional statistics like detailed neighborhood comps that include repairs, incentives and seller paid closing costs if any, days on the market, asking price versus actual selling price, etc. Do the houses for sale in this neighborhood generate multiple offer situations, do they sell in the first week, month?
I would ask my agent to try to find out seller motivation and if any offers had been on the table previously and why they didn’t work out. While some of this info is not required to be shared by the listing agent you would be surprised what some agents will share in a friendly conversation with another agent.
Bottom line would I be satisfied with a $108k purchase on a $112k asking price? Depends on my due diligence. I want my buyer and seller clients to feel I have provided them with every piece of info at my disposal so they can make an informed decision.
If you trust your agent has considered all of the available info and given you their best advice then he/she has done their job. And you get to decide what to offer.
Jim
I agree about how important knowing the comps and how long these particular properties stay on the market is. I know this particular neighborhood fairly well as I have bought 2 other properties in this subdivision. This property had only just gotten on the market and it will most likely not take much to become a rental (have to take wood burning stove out). I know he would have written a lower offer but I imagine he figured since it just went on market and the houses in this neighborhood sell fairly quickly and the other agent was a veteran agent that it would be best to hit them with the max price and reject any other counters. I also knew what these folks had paid for the property and I knew theoretically they had about 20 grand in equity. So there was a little more lee way than if they had just bought the property last year and had no equity. Bottom line is I bought a nice property that should cash flow with non oo loan 80/20 and all I have to show up with is about 3 grand at closing.
TP
Another question concerning negotiation:
After home inspection found out that detached garage needs new roof/siding. Should I ask for an allowance for that?
TP
Sorry to hear that you’re in this situation....
And before you walk away determine the profitability yourself...
However before I can help I need to know the values of the property...
What did you agree to pay for it?
What will it be worth?
What are your cost to rehab?..
And 3500 can come from many different sources... and it doesn’t have to be CASH...
Don’t limit your thinking to liquid money...
let me know if you need help....
[addsig]
NewKid....
Thank you..... I was too frustrated to respond....
I am not old enough to remember the day everyone thought the world was flat and you would just fall off of it if you went to far...
But I hear that we now know its round...
Imagine going through life and never saying.
"Could there be a better or different way"?
[addsig]
I didnt say your questions were stupid....
Your unwillingness to look outside the box was....
[addsig]
Jill,
How about letting us know where/how you solved the problem.
Jim
Totally OT but sometimes you do need to reexamine the profitability no matter who has already looked at the deal.
I see people quite often who fall short because of underestimates on the repairs. Especially now that materials costs are increasing so fast.
As contractors we just saw several estimates where due to materials cost the repairs went up by almost 25%. after the price in crease in January
Hi Short Sale Pro.
These are individuals are either months behind in their mortgage or coming out of bankruptcy protection. [ Edited by investornewbie on Date 02/18/2006 ]
Did you let the bank know that these werre investment houses?
Yes I did, but maybe this bank is not accustomed to working with investors. Should I try hard money lenders?
One of the deals I am working on is with someone coming out of bankruptcy and owes $100K on the mortgage, is 10K behind in payments. House needs cosmetic work. Value is $160K. I am trying to figure out how to structure deal. I don;t think enough equity is in it to wholesale, so I wanted to buy it myself and either rent it out of turn around and put it on the market. My dilema is how do I get the money.