So, I’ve finally gotten off my ass and done my first deal!! Found a house, totally gutted, not livable at all right now. County assessor has it worth $86K. I signed a contract for $20K, left a $10 deposit. I can sell this contract? I get on the horn with people who buy houses, and one of them will offer to buy my deal?? Or am I missing something?? I have 30 days from today to make something happen…
It doesn’t matter what the county assessor says. What is the after repaired market value (ARV)? You must research recent comps to come up with that number. Be conservative.
You also need to know the cost of rehab.
Come back with those two numbers, and we can help.
–Natalie
Congrats to you for taking action.
Natalie is right that you need the repairs estimate and comps. Your cash buyer will need to know both of these numbers.
Is your contract assignable?
Finding the buyer when you have a great deal should not be hard. Yes, you can start calling the “We Buy Houses” signs, but beyond that be sure to make a flyer and distribute it to the buyers at your local investment club meetings, stop over to your local section 8 office (or gosection8.com) and connect with others who already own property near yours.
Let us know your numbers and the type of contract you used.
Jim
re:
Thanks for the responses… now to answer your questions-
1.) My contract is assignable, as I made sure that phrase is used in it after the “Buyer” space.
2.) As for comps, I looked up and got 2 other properties in this town, both homes are of similar size. One for $100K, one for $106K (I’ve contracted to purchase for $20K).
3.) I’m in the process today of calling contractors to get some estimates for the repairs.
Between craigslist, and the “I buy houses” signs, I’ve got a list of about a dozen names of potential cash buyers in my area (western Virginia), so I’m wanting to have this wrapped up before my closing date of September 10.
Thanks!!
While you’re working on your repair estimate, you should work on coming up with a “contract assignment” form. Basically you want to make sure that when you find your buyer, that you stay in control of the deal so that they don’t go around you and do business directly with the seller.
–Natalie
re
I’ve got a couple of potentially interested buyers for this property, and today I have a contractor going over the place with me, to give me an estimate. I also have a right to assign clause in my sales contract, as well as a separate assignment form for my end buyer.
So, am I on the right track? I got my comps from Realtor.com’s list of recent sales in the area. I just feel like I’m missing something…
Thanks!