Posted by Nate on March 22, 2001 at 20:24:50:
Or do a L/O with payment beginning when you get a tenant.
L/O in a bad neighborhood? - Posted by Marlon(OH)
Posted by Marlon(OH) on March 22, 2001 at 16:17:02:
I spoke with a lady today who has recently bought a new home and needs to get rid of the old one. She’s open to doing a l/o but the problem is that her house is in a bad neighborhood. Her house is extremely nice but most of the others are run-down and very old. Her house is so nice that it looks like it doesn’t belong there. Most of the “nicer homes” in the area have sold for 35k-30k and the run-down ones have sold for 10k-5k. She’s asking 18k for it and kept repeating that the price is very negotiable. Do this sound like something that’s good for a l/o? Or should I just pass and stick to the nicer neighborhoods?
Thanks in advance,
Marlon
I’ve got a similair situation … - Posted by Redline
Posted by Redline on March 23, 2001 at 15:23:50:
Going to look at the house tonight or tomorrow. Lady wants to unload the house - asking too much right now but I can see she’s very motivated. It’s a 2 family, she’s got 1 apt, her daughter lives in the other. So I’ve got to find 1 renter and 1 owner!
It’s in a tough area - I’m gonna check out how tough tonight. She owes about $50k, said she wanted $90 - I figure it’s worth about $90k.
I would like to get the deed, but for sure I am worried about finding a worthy tenant buyer.
Guess I just gotta get tough and give it a shot, eh??
RL
Selling in a bad neighborhood? - Posted by Bud Branstetter
Posted by Bud Branstetter on March 23, 2001 at 09:08:54:
The problem with owning a house in a low end neighborhood when you want to sell is that very few want to live there and those that are willing don’t have money or good credit. You may be able to sell at 30-35K but it may be on soft terms. If the lady is wanting to sell on soft terms then buy. Screen your new occupant carefully. Most important criteria I would want is job stability. Families with rental history are good. You may have to learn how to be a landlord.
What is it going to take to buy. Owner financed? Let’s start the discussion of owner finance vs cash on this one.
Re: L/O in a bad neighborhood? - Posted by JPiper
Posted by JPiper on March 22, 2001 at 20:59:46:
There’s big money in bad neighborhoods. BUT, you better be up to the challenge. Whether you are or not, I can’t say. You should carefully think about your strenghts and weaknesses as a part of your decision making process.
What I would be wondering right now is if the “nice” houses have sold for $30K-$35K…and I can buy a nice house for $18K, why not? And then you say she says she is negotiable…I get even more interested.
Why worry about a lease/option. Why not have her deed the property? Does she have a loan? If so, take it over. If not…make your offer with owner financing.
Let’s face it…this seller is trying every way she knows how to tell you she is motivated without saying the word. So the question is now are you up to the task in a “bad neighborhood”? Do you know your numbers? Rents? Sales?
Nice neighborhoods with nice houses come with small profits.
Your call.
JPiper
Try working the 'hood - Posted by Dave D (WI)
Posted by Dave D (WI) on March 22, 2001 at 19:36:18:
I’m not a huge fan of war zone properties, but I’ve had a little luck marketing to the locals within it. If it’s a good deal, tie it up, and re-market it with soft terms to their neighbors. Put together a nice flyer with an irresistable offer. The locals all talk, and one of their relatives may want to move in across the street from them. Could make for a quick pop for you.
Re: L/O in a bad neighborhood? - Posted by BillW
Posted by BillW on March 22, 2001 at 16:43:29:
Marlon, Why don’t you just try a straight option for a short period. Houses in poor areas are just very hard to sell. A straight option won’t cost you any monthly payments, just a small option fee.
BillW.
Re: Selling in a bad neighborhood? - Posted by Marlon(OH)
Posted by Marlon(OH) on March 23, 2001 at 23:17:51:
Thanks for replying. Can you give me an example of what type of soft terms I should try to get in a deal like this?