Posted by CurtNY on May 16, 2000 at 11:17:39:
Shenesa,
Why not ask the owner if they’re willing to owner finance? Give them, say $1,000 down and offer to give them monthly payments of $100 until its paid off (maybe offer more than the $2,000 purchase price, say $5,000), then sell on a wrap to an investor (the less they have to put out of pocket the better) take $2,500 down and owner finance the purchase for them at $12,000. The don’t have to get a hard money loan and you make money up front, and a nice rate of return with no money out of pocket. This is assuming your repair costs are accurate. GOOD LUCK!!!
CurtNY
Boarded up property - Posted by Shenesa
Posted by Shenesa on May 16, 2000 at 09:15:21:
Hello All,
I recently sent letters out to homeowners of boarded up properties letting them know that I am interested in purchasing their property. The response was good for the amount of letters that was sent. One in particular was from a women who lives in Queens, NY who called me and explained that the house needs a lot of work. It’s been vacant for 5 years and they started doing work on it but then relocated. The comps in the area are 50K and growing. The owner stated that she once had it listed for 10k w/realtor, then $5k. She has no liens onthe house and it is free/clear. I offered her 2k, she said she will consider it. This house is a 2fam w/3brs on both floors. The apartments will rent for $500-$600 a month after fix up.
My question is can a property be so bad that it is beyond repairs? I do not believe this is the case, but its hard to think that an investor would take on such a project. This house will need about 10-15K worth of work. I do plan on getting it under contract and assigning the contract to another investor. The owners are coming from out of town next week to show the property to me. Is there anything I should put in the contract that is specifically geared towards homes with this magnitude of repairs needed.
I can honestly say,although I haven’t done my first deal yet, I am enjoying hitting the streets and finding out about the needs of people and the way this business works and how to work it.
Thanks for your response.
Much Success!
Shenesa