Re: IS THIS A DEAL? - Posted by Mark A. Nyman
Posted by Mark A. Nyman on January 26, 2000 at 21:34:08:
I think it sounds like there is definitely the possibility of a deal. The key is to find out about the house. I would get an option to buy the house at $75000 or you can ask for a lower price subject to certain conditions that would protect your interest and give you time to do more due diligence.
Can you save the house?
Find out what it would cost to repair the house.
Get good comps. What can you sell it for?
Call the city and ask them questions. Find out who is in charge of condemning houses and give them the address and ask what has to happen to get the house up to speed.
Sounds like the lady assumes the house isn’t worth anything and she is selling for the cost of the land $15k times 5 acres. I would find out if the land is worth that amount of money. If it isn’t then you could negotiate to buy for the cost of the land or less and the house would be free.
I am getting started using Ron Legrands method for wholesale-retail. This system includes a method for evaluating properties and making offers so you can determine what is a good deal based on what you can sell the house for when it is fixed up.
The other option might be to find someone who has experience and who will work with you on this deal. You would have to share the profit but by having someone who has done deals before can help eliminate mistakes.