Got a whopper - Posted by Alice Hearl

Posted by Jack on January 01, 2009 at 10:42:55:

…why is it even worth driving by?.. lol

…a real ‘whopper’

Got a whopper - Posted by Alice Hearl

Posted by Alice Hearl on January 01, 2009 at 09:22:28:

I’m trying to figure out how to bring a duplex deal down because it was built back in 1944 and has no tenants.City value $189,600, and was contacted close to 5 mos.later after sending a letter out.The owner wants to sell for $200K. Haven’t been able to get inside as yet. One unit from a window looks pretty clean. The other unit is closed up tight. Can’t locate tenants, the mail boxes are full. This duplex has been empty 2 to 3 yrs. Went back to the City 12/31/08,and found that this transaction was a gift& it is now under a LLC. Not sure whether to bird dog it to another investor, work to bring the price down by depreciating costs of the $200K because of it’s age in order to wholesale it, or get seller to finance. Hmmmmmmm

Re: Got a whopper - Posted by Kristine-CA

Posted by Kristine-CA on January 02, 2009 at 09:59:34:

Alice, I have a suggestion. I suggest that rather than building a case
or defending what may or may not be a deal, that you be totally open
to hearing/learning all the things that could make this deal a no go.
So, start as if there is no deal and find the facts that make it a deal,
rather than the other way around.

It’s not a whopper unless there is equity…I don’t see any. I suggest
looking at the numbers way more objectively. More objectively than
getting an agent friend to give you approximate value. Do not use tax
assessment value. Use actual recent comparable sales (perhaps your
agent friend could provide you those). Go inside and evaluate repairs,
or find someone who can. Figure out why it’s a non-cashflowing asset
for the current owner, and why he needs to get rid of it.

There’s a lot to learn here. But the most important things to pay
attention to are values and repair costs, especially these days. Kristine

Re: Got a whopper - Posted by DaveD (WI)

Posted by DaveD (WI) on January 01, 2009 at 11:58:14:

Forget values. Forget asking price. Forget about “depreciating costs.” What price makes sense to you as an investor? I’m thinking the goal here is to make some dough, right? If you were to wholesale it, what would the wholesale price be… so you can leave some dough on the table for the next guy.

(Someone) owning an empty house suffers a reverse benefit… it is the “gift” that keeps taking. Someone hates this thing because of that. Find out who, and see if you can take it off his hands. But you gotta have some idea about what represents value, and what deals are worth pursuing.

Re: Got a whopper - Posted by kwbruce

Posted by kwbruce on January 01, 2009 at 10:08:07:

might check out city, or state office may owe taxes up to the gill

What are this property’s merits? - Posted by Rick, the Probate Guy

Posted by Rick, the Probate Guy on January 01, 2009 at 10:05:25:

What’s the deal? What makes this property even worth driving by, let alone stopping the car?

By your post, it’s impossible to see what you’re seeing, let alone where the opportunity is. Please fill us in…

Re: Got a whopper - Posted by Alice

Posted by Alice on January 01, 2009 at 20:31:54:

DaveD(Wl) The owner left a message on my phone because of a letter I sent him inquiring about the duplex that had been sitting for so long and what he was intending to do with it in this current market. He told me that he was ready to sell, wanted $200K for it. If I didn’t want it and knew of someone else that would be interested in it,please let him know. Meanwhile I sent out some feelers. I have a business friend A high end builder who owns duplexes and I asked what the going market was for duplexes as he and a Real Estate Broker have a business together as well and they own several duplexes. He said the going market for them are between $250K and $270K in good condition. The Builder friend, expressed an interest in this and said if I find things that are profiable they’d be interested in looking into it as a few of their duplexes are close to being paid off and they want to do some more investing. I let him know that if I find a good deal that I wanted to get paid for it. Now this is where the bird dog comes in for a small fee or if I can find a way to bring this $200K down by wholesaling it. I can make more money for myself and make it more appealing for my end buyer. Alice

Re: Got a whopper - Posted by Alice

Posted by Alice on January 01, 2009 at 19:50:56:

kwbruce Good point about the taxes. I only had time to get into the deed book to find out what transpired back in 2004 when the property changed hands. The city closed at noon and I was out of time.

Re: What are this property’s merits? - Posted by Alice Hearl

Posted by Alice Hearl on January 01, 2009 at 21:05:34:

Hi Rick. One thing Location, location, location. Good potential for a rental property. It sits on 1.73 acres, on a very busy street. There are houses in this area that are small and the City changed it’s rules as to square footage on building new houses and how big the lot sizes are and are being gobbled up by builders and developers. This particular duplex as I said before has been sitting for 2 to 3 yrs. without tenants. I thought that someone had purchased the property to tear it down and build another high end house as there are houses going up down the street and in around this property. I couldn’t figure out why it wasn’t being rented out. And duplexes are a big thing around here if you can get one. Alice