First Timer. Good Opportunity (I hope)...... - Posted by SC Novice

Posted by Shawn J. Dostie on August 09, 2003 at 06:46:20:

in dollars and cents. I like to be in a property of this type for no more than 30k including repairs and my offer to the Realtor would reflect that less a little neg. amount. Make them submit with a 24 hr time limit and if you find it truly non negotiable, make the decision. If it were in my area, and the cosmetics were soley paint, carpet,general cleaning, and landscaping (Loosely used), I would own it… period. However if it needs a new kitchen, I wouldn’t… Heck, I’m dumb enough I might. Remember I am a modern day Tom Sawyer and I get my tenants to do quite a bit.

Good Luck,

First Timer. Good Opportunity (I hope)… - Posted by SC Novice

Posted by SC Novice on August 08, 2003 at 20:59:12:

Estate property listed through realtor. 57 year old 3 bedroom house w/ siding, 2yr. old gas pack, and ok. roof in strong rental area (mill houses w/ mobile park down road – all rental in populated area). Comps average $400 per month. Realtor said judge set price of $33k and has already rejected two other offers. Significant cosmetic work required.

a.) how firm can I expect the $33k to be?
b.) any creative recommendations?
c.) house has little appreciation potential but could be a good cash cow. Does low price make this a good deal?

Any thoughts, advise, or suggestions?

Here are my thoughts - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on August 09, 2003 at 10:54:09:


Just from the price and the rents, this sounds like an ok deal, not a great one.

I think it is important to be able to compare a potential purchase with whatever else is available in the marketplace. Or with whatever else you may be able to dig up because of your knowledge of the area.

If you don’t know what other similar deals have sold for in the open marketplace, you are not, in my opinion, ready to start laying out your money. Remember there will always be good deals in the future. Sure, there is one property that I missed buying when I was very green and starting out, that I regret not buying. But mostly, I do not worry about the deals I did not acquire. It is better to pass up two good deals than get yourself entangled with one bad deal, in my view.

So, how does this property compare to other properties that have sold recently? Are there better deals to go after?

Then, if you decide you need a lower price, offer less. It is possible that the “seller,” the judge, will accept a low offer now if there have been several other low offers that were rejected. Do you have any information about what was offered by the others? Even if not, perhaps your “low offer” will be higher than the others offered and the judge will find it acceptable.

If not, so what? On to the next potential deal. It’s all a matter of numbers. Eventually you see and offer on enough properties to make a good deal.

In a situation like this, it is good to know other investors. One by one different investors make very low offers for the property, all within a narrow range. Now you come along and offer slightly higher than the range. May just get the purchase. When somebody is offering a property for sale, the market tells the offerer what it is willing to pay. The sensible offerer will see that and adjust his/her expectations of a sales price to what the market is saying.

Ethical? Sure, if all of the investors were making a legitimate offer. That is, they would have consumated the purchase at the offered price.

Good InvestingRon Starr*****