Posted by Laure on May 30, 1999 at 08:02:43:
Market it with the cosmetics done. Save the roof for last, and offer a “roof credit”. I find that I usually want to do more to a house than a buyer expects. However, I understand not wanting the flat roof. Sometimes, I just say, I am planning on putting a pitch roof on, however, the price would be xxx, if you buy it as it is. Saves me fretting when I have all my cash in the rehab and the phone isn’t ringing. A pitch roof is going to cost you a bundle. Good luck, and let us know how it goes.
Also, as far as tired Landlords…sometimes they do get out of touch with the market. I have gotten several this way lately with very nice profits. They really don’t care about the extra profit if it were rehabbed. They have been rehabbing all their lives and they just want out. ENOUGH IS ENOUGH… this one guy said to me. It was all ok too, because I bought 35k under market and all I did was a bath remodel, carpet and paint !!! I’m renting the house now. I like it so much, I want to keep it ! LOL
Laure 
Eureka, I Did It!!! What Do You Think? - Posted by Erich
Posted by Erich on May 29, 1999 at 17:54:17:
I just bought a house with no money down and got a good deal… I think.
Here’s a bit of background…
My real estate market is extremely competitive and prices have been skyrocketing. I found an empty house in good /decent neighborhood. It has a flat roof, 3 bed / 1 bath. I bought the house form an old investor who had fallen into some financial diffuculty and needed to sell right now. The asking price was 165,000, I borrowed 16,500 from a private investor for my down payment. The seller carried the remaining amt at 9.5% and did a wrap around deed of trust, paid the owner 10% down for 120 days, my payments will be 1178/month plus taxes and insurance. I must refinance or sell after 120 days. The house has a flat roof. So I plan to put a pitched roof on it, new windows, paint and carpet, grass and shrubs etc… When all is said and done I will have spent 15K of my own cash and an six to eight weeks of my time fixing it up. I should be able to sell for around 235K. In this market I can sell without real estate commission and the house will move fairly fast.
So what do you people think… I could make 50K ?
I am also looking for advise on construction loans. Does anyone know of any recomendable companies?
Re: Eureka, I Did It!!! What Do You Think? - Posted by David Alexander
Posted by David Alexander on May 30, 1999 at 18:11:12:
I’m with the others, market immediately what could you sell for As Is with none of your cash in the deal. since your exit is to get a new loan you’ll need the time to get it financed. Sell, sell, sell.
David Alexander
Refinancing in 120 days will be… - Posted by Kevin(OK)
Posted by Kevin(OK) on May 29, 1999 at 20:39:47:
…very difficult, due to the fact that you have a very short payment history. I’m not saying that it can’t be done, it will just be at a higher interest rate. Quickly flipping it may be your best bet.
Good luck!
Kevin(OK)
Why Change the Roof? - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on May 29, 1999 at 19:02:01:
Erich,
Does the roof leak? If not, why invest in a new, pitched roof? Is a pitched roof required in order to get $235K? If you have to get rid of this property quickly, I’d forgo the roof and spend that extra 6-8 weeks marketing it.
$50K is a nice payday, but proceed cautiously. You’re buying from an “old investor” who has fallen into some financial difficulty. He might be motivated, but I doubt that he’s stupid. Now, if the property is worth $235K and only needs $15K worth of repairs and fixup, why doesn’t he sell it for $200K? In a hot market, that’s $35K below FMV, and with $15K in repairs, a retail buyer is still buying $20K below FMV.
I’m not suggesting that you didn’t get a good deal. I just don’t enough about your market, the need for the new roof, and the motivation of your seller.
Good luck.
Bill K. (AZ)