Needed: Advice On Comps For RE Deals
Anyone got any good...no, no aGreat, FREE RE comp web sites? This seems to be my last great fear....making sure I comp the home(s) correctly....without trying to write a ton of weasel clauses to cover my mistakes. I want to get into wholeselling and I get most of what I have read but I still have to cross this road. Any and all comments are welcomed. Thank you for your time and consideration of reading this posting. What a great day!!
Wheatley02
What do you guys think of Zillow? It has pretty good coverage for many parts of the country. Also, instead of treating their "Zestimate" as a completely accurate number, just click on their options for looking at all of the available comps that they provide and decide for yourself.
zillow
homegain
dominia
http://reply.com/
http://realestate.yahoo.com/Homevalues
http://nationalcitymortgage.equinoxco.com/pdsearch/freeSearchByLocation.jsp
http://www.homeradar.com/
Here is a method I use to educate myself & build a basic data base for comps in my area.
My local newspaper has online edition that list property transfer once a week (for me sunday); however this info is about 2 weeks old. Although this info is basic(street address, sales price, seller and buyer), it can helps since I am operating on limited budget.
In a nut shell, I go online to my local newspaper. I find the property transfer article or link.
Then I:
Highlight the text of the transfers,
copy and then paste to a word processing program
I save the document so I can find it later. I keep adding to this document every week.
After about 3 months(I now have over a years worth), I had a data base that I can search by using the find in document (control F) to find streets around the property I am interested in. This provides me the sales price of properties in that area. With not all properties being the same, I drive by the properties sold to compare to the property I am interested in.
I am working on a detailed article on how I use this to be posted at a later date if there is interest.
Hope this helps.
wheatly,
read my previous again
clipping newspaper is more tedious than the method mentioned
my method is tedious but with using a computer to save info you can search easily.
Good Luck to you
I am still in this wonderful state. With 50 degree weather today.. it hardly feels like MI though.
I am invest ing and rehabbing in Western Wayne CO., some Downriver and West side of Detroit. I have been investing for about 14 years. I will look at any deals that you have,
[ Edited by JohnLocke on Date 12/14/2006 ]
Yes.
http://www.thecreativeinvestor.com/residential/modules.php?name=Members_List&search=1&user_occ=20&state=MI
One trick I use is driving around the "hood the day before...or the day of trash pick up...no cans just might be an empty house (and then I focus on that house....Over growen lawns and newspapers/phonebooks on front porch are a give away....hey, try talking to your mailman/maillady...they seem to know whats going on around your sub too...I hope one of these ideas helps you....they have worked for me in the past
Do a web search for the National Vacant Properties Campaign. They are just getting organized, but could be a resource for investors in the near future.
We have over 20,000 vacant and abandoned properties within the City of Buffalo, if you are interested in super-high-risk investing.
Since you have a day job, why not start a bird-dog program with your delivery/service people. You garbage men, postmen, UPS drivers and other service people are out on the streets everyday. They probably see more than they realize.
You might need to prime the pump a little with some starbucks gift cards and a big reward for something you close on. Every body is looking for a little extra cash.
Couple of ideas.
1. Offer to carry back 10-15% on a second.
2. Offer to pay closing costs and discount up to say 6%.
Both these will work non-conventional and many mortgage companies will accept these with no problems. It all depends on the buyers credit.
What does the prop appraise for?
You could easily get cash out on the sale to the tenant if the LTV is right and then hold a 2nd at a higher interest rate, season the note a couple years then sell the note to an investor for cash..
This deal sounds very reasonable.
i.e. FMV 70K
loan at 70% is 49K
2nd note 10k at 12%
you sell the note in 2 years for 7k , so you would have made 56 + 7 + 24 months at 120/mo on a 15 k debt.
not bad
[addsig]
The house appraises for 60K. MY tenants cannot get bank financing, they have been turned down by someone I referred them to who was trying everything possible to finance them.
Is there any other routes out there to get me cash out of the house, with or without selling it. I could live with as little as 10k cash out. What is my best route?
I do this all the time. I have several real estate agents that I work with. I get the offer forms they use and fill them out myself. I will make offers across the board for any property that fits my criteria. I include an inspection clause of course. Once I fill them all out I give them to my agent and he submit the offers to the listing agent via fax or delivery.
These are all cash deals as this is the only way this method works. Get you cash lined up first so you do not have to have a contingency for financing. Also have the closing set very short. This seems to motivate some sellers.
Then you sit back and start to get counter offers of rejections of no response at all. If just depends.
I fill out a promissory note for the earnest money. The note is converted to cash upon acceptance.
Most agents will not let you do this but if you look around you will find one that will work with you.
I get enough deals this way to keep me busy.
Good Luck.
Hi.......I know I am responding a little late but wondered if you could give me the name of that website which allows free MLS access. How is it going for you?
Thanks a lot!
Hi Richard.
Wholesaling apartments are a great idea. I have financed quite a few and it is a growing market, especially since the Residential market is very slow.
If you are using MLS, try speaking to Realtors about any expired listings for Apartment. You will have better negoiating power with expired listings.
It gives the Realtor a chance to make some money if possible.
[addsig]
I had a coupl of my wholesale deals ruined by an investor that when to the seller directly. After my second one, I know longer work with any investors that I do not know personally or do not come highly recommended by people that I trust. If the deal is good, you only need a very short list of investors whom you need to contact. if the deal is marginal, then you need a big list. So ... find good deals and only work with an investor that you trust.
Many people on this site will say that you should file a Memorandium of Agreement with the clerk of the court to cloud the title. You can try this and see if your clerk cross indexes it with the sellers name. If they do not cross index then the Memorandium is useless.
This is my first time on. So I hope you get this. What do you mean by fee. I assume that you are just flipping this property. A strong note to "Flipping" you need to get a contract for the property between you and the seller. In the special provisions of the contract state that the contract si subject to inspection and approval of the property by the buyers "you" partner "any investor you are marketing to". Then when you have found and investor interested in your pirce you have two options to get your money. One assignment of contract. You make sure that the assignment and actual contract with the owner both get brought to the title company by you. This will make the deal only good when the fee is paid. Which will actually be paid by the closing company with a check to you.. Other option write a seperate contract with the investor stating you as teh seller and investor as buyer get earnest. Bring both to the title company and do a dual closing this will make your profit confidential the title company will pay you a check for the difference in the prices minus closing cost. Note make investor pay all closing and prepaids in your transaction.. This will help lessen your cost and increase some profit. If the investor just goes behind your back. There is nothing they can so until your contract with the owner runs out. Make sure to keep the property marketing until an actuall close. YOu can also require proof of funds before you even consider accepting and investors offer. Once someone has attempted this to you. Just let them be and make sure to X them off after all they will be the ones that lose out. There are to many good honest people to work with. Good luck to you and keep hanging in there..
Bettie
An excellent way to put a hold on greedy investors, is to limit the amount of information you give them concerning the property.
It is ok to show a picture, City, ST of propety. But when you show the complete address, nothing is stopping them from getting driving directions from the Internet and finding the house.
Then what comes next is them speaking directly with the home owner. This cuts you out of the deal.
Try limiting your info and have them contact you only. Then screen them with questions to make sure they are serious. Be the representative for the buyer only. Once they papers and agreeements have been signed, the seller can be revealed to the buyer.
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Cassandra Carter
[ Edited by LarryNut on Date 01/29/2007 ]