I have found a couple of "fixer uppers".... - Posted by Michael

Real Estate Investing
1

Posted by tarun_md on February 15, 2000 at 20:42:43:

Mike,
Just set up an appointment with the owners and make an offer. Make sure that you have some idea of the repair costs. If you are not sure of the the repair costs, just make an offer assuming the homes need everything with an inspections and approval contingency. The point is to get the houses under contract so that someone else doesn’t “steal” it from under you. Once you have it under contract, take a contractor with you to get the repair estimates. If the estimates are more than what you guessed, renegotiate the deal. Always know your back door i.e what you want do achieve from this deal…do you want to wholesale it? Do you want to retail it??..or what?
Most importantly, act like a professional investor in front of the homeowners and always carry a contract with you with the necessary contencencies that will make it a good buyer’s contract.
Hope this helps!
Tarun from Maryland

2

I have found a couple of “fixer uppers”… - Posted by Michael

Posted by Michael on February 15, 2000 at 13:57:06:

one is a duplex…currently empty, needing repairs…roof, windows, electrical I am sure, etc (haven’t seen the outside) and I want to approach the owner with a purchase offer…any suggestions on how to approach this? What questions should I ask? How should I proceed? Should I get a contractor to look at it?

The other is a SFH…overgrown with weeds…brick front porch falling apart, etc…same question here…

Also financing…we have 2 homes now, what are my best avenues for financing? I don’t have much $ for a down payment…

any help appreciated!

Thanks.

Michael

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Re: “fixer uppers”… - Posted by Rolfe Mpls/StPaul

Posted by Rolfe Mpls/StPaul on February 16, 2000 at 24:38:44:

Michael;

A lot depends on your market and your goals. Determine the “fixed up” value, and if there is enough room, move quickly. Don’t be hesitant to offer low.

Don’t take the sellers word on fix up costs or end value - determine that for yourself.

It never hurts to have a contractor look at the property. You might try an offer contingent on an inspection (state a time frame, such as 48 hours). Doesn’t hurt to try.

In my market, competition for fixer uppers is so intense that I have to offer very quickly - usually that day. Offers with contigencies are not generally considered.

Ask about “work orders” to fix code violations, back taxes, water bills, ownership status, etc. Check the big ticket areas thourghly - foundation, structure, mechanicals, windows, exterior, roof, interior. If anything is shot, call this to the sellers attention and push the price down. Remember, do not believe the sellers cost estimates for repairs.

Be up front with the seller. Let the seller know you’re interested, but only if you can to make $. The seller either bought the dogs or let them run down. Either way, the condition of the properties is not your fault, and you do not want to pay, you want to profit.

Can’t tell from your post if you’ve completed a major renovation, but it can be a very consuming process. Kep your eyes wide open, then give 'em hell. Before you start construction, plan everything, and specify all your products.

Keep us posted, and good luck!! Rolfe