Abandoned Property Deal - Posted by HT

Posted by HT on March 17, 2000 at 08:20:31:

Hi Joe,

Good advice. Thanks for the feedback.

Abandoned Property Deal - Posted by HT

Posted by HT on March 16, 2000 at 16:26:19:

I came across an abandoned property in a lower to middle class neighborhood. The backyard of the property is located next to a apartment complex with a pretty bad rep, but they are building a new industrial park directly across the street and it is 1/2 mile from a subway.

After tracking down some owners info, I am preparing to send a letter of interest for the property. According to tax records, they paid 55K in 1987 and it is assessed for about twice that amount.

My questions are:

  1. Should I make an offer for the property?

  2. If so, should I make an offer for the property in the letter or let them start the pricing and counter?

  3. How much should I offer? This is a perfect flip property, so a cash deal looks like the probable option.

  4. If I perform cash deal, do I assign and get out, or do a resale to a rehabber and perform a simultaneous close?

I could finance for 75% of value, to acquire some cash and L/O to cover payment, but need to give some thought of whether I want quick cash or long term.

As always, any and all feedback would be appreciated.

Re: Abandoned Property Deal - Posted by JoeB(Atlanta)

Posted by JoeB(Atlanta) on March 16, 2000 at 17:07:43:

Hi HT, my experience has been that if you send a written offer with your first “I want to buy your abandoned house” letter it freaks out most owners.

It’s too “in their face”…you might want to start with a “I saw a house at xxxaddress which I think you own. It seemed vacant, and I’m interested in buying it as-is, for cash…blah, blah…please call me to discuss…” type of letter.

But I always speak to the adjacent neighbors and use some PhoneFinder type software or internet to try and get a phone number so I can speak to the owner in person. Letter is my last resort, when I can’t find a phone nbr.

Best of success,
Joe Brillante