Posted by ken on March 11, 2006 at 19:25:09:
If the owner will not sell it low enough so someone can rehab and make an acceptable profit then there is no deal.You either need to make the owner understand or look for another deal.The trick to this business is not to dwell on non deals.Make sure the owner has your number and they may call you otherwise move on
Help Structure This Deal. PLEASE!!! - Posted by Terrance
Posted by Terrance on March 11, 2006 at 18:30:13:
I have a co-worker who owns a small house free and clear and wants to sell. I am a newbie (three homes so far) so I call a more experienced investor in to look into the issue. He went and saw the house and told me that he would only do the deal at about 14k. She rejected that offer and asked me if I knew of anyone else, so I contacted another investor friend of mine and decided to go with him to see the house. I may not be well informed when it comes to rehabs but even I can see that this would be a major rehab. The property will only comp for about 55-60k totally rehabed. The only reason I’m even thinking that there MAY be a deal here is because the house is owned free and clear, but I just don’t know how to structure it. So if anyone of you vets out there help me out,Please feel free.
Re: Help Structure This Deal. PLEASE!!! - Posted by Equity Hunter
Posted by Equity Hunter on March 11, 2006 at 22:46:30:
Why do they want to sell? That’s the most important question you can ask. And what’s “major” rehab? Your major, might be my minor. And, where are you getting your comps?
Seller motivation is the most important factor here.