Posted by james on April 11, 2006 at 17:28:27:
the spread is too low, no way any investor would touch this deal.
Bird dog on the loose!!! - Posted by ETinoco
Posted by ETinoco on April 11, 2006 at 09:00:21:
Hello everyone, I started bird doggin in Missouri about 2 weeks ago. I’ve found an investor that buys real estate in Kansas city, mo, looking to build his rental portfolio, he uses financing to buy homes. Recently a woman in the same city called me saying that she would like to sell.
here are the facts:
The woman selling the 1000sq/f home is a real estate investor. She has the property under an assignable contract with no contingencies. Comps are going for 123K and the property is tied up for 109K. The property is in move-in condition which fits the criteira of the investor looking for rentals, no liens and back taxes on the home and It’s around good schools, Full basement, good-sized back yard with shed, and clean carpet.
The contract expires May 1, so she wants to assing the contract by April 30. She is an out of town investor, she has also already bought another home so she needs to get rid of this one, and she is going home this saturday. She still wants an assignment fee, but said that “she’s willing to talk turkey”
What approaches can I take to this deal, is it a profitable deal for the buyer? and what information should I provide for the buyer? I would greatly appreciate any advice on this deal. THANK YOU
Re: Bird dog on the loose!!! - Posted by Luke Hoppel
Posted by Luke Hoppel on April 11, 2006 at 23:29:59:
Ok, well you have already been told 5 times that there is no money to be made here and you can’t do it. Although I agree that there is a small profit margin here, lets, in the name of investing, be a little creative.
What if you worked with the ivestor and together talked the seller into giving you a lease option? Then you sublease it with an option at a higher price??
Ok, now I realize that this may not be a feasible strategy because I don’t know all the facts and my point is not to sell you on using a lease option.
The point I am trying to make is to think outside of the box and look at different angles. Don’t resort yourself to only one strategy.
So when you post a deal and get multiple responses all saying the same thing, there’s a good point that they are correct so don’t just give up, unless you have more deals than you can handle coming in. Look at it from a different perspective and perhaps there will be other possibilities. On that note, there may not be anything profitable in the deal. I’m just trying to encourage you to learn different angles so you don’t miss anything.
I wish you the best of luck and happy investing!
Re: Bird dog on the loose!!! - Posted by Joe Kaiser
Posted by Joe Kaiser on April 11, 2006 at 20:17:26:
ET,
You need to be the one assigning the contracts . . . not the other way
around.
There’s almost never any white space when it goes from investor to
investor to investor.
We need white space. Big, wide-open, football field size white space in
every contract we are involved in . . . and you have none whatsoever in
this one.
Joe
Re: Bird dog on the loose!!! - Posted by Pat
Posted by Pat on April 11, 2006 at 09:38:12:
There’s no room for you. The spread is only 11% and most investors want more than that. Additionally, with a May1 expiration date, the other investor will have little time to do his due diligence and line up his deal. it sounds like the “investor” holding the contract can’t find a buyer to flip it to and is looking for a “Bird dog on the loose” to stick with a property she can’t move. You can do better than that; be patient.
Re: Bird dog on the loose!!! - Posted by Rachael
Posted by Rachael on April 11, 2006 at 09:16:12:
Hi, I’m new to this, but from everything I have seen the profit would be too thin. Not sure how much rent you could get out of it, but it doesn’t seem like a great deal. Not enough cash flow each month. Anyone else care to respond? Just my opinion.
Re: Bird dog on the loose!!! - Posted by ETinoco
Posted by ETinoco on April 11, 2006 at 09:30:32:
I know very little about renting because I study wholesaling, but he is holding the property so it’ll appreciate and if he can get an acceptable down payment and reasonable mortgage payment, then his investment (including assignment fee, my finders fee, points, ect) would bring him some cash flow and 14k in equity . Again im no expert in this, I could be way off.