Posted by Michele (OR) on August 25, 2003 at 24:53:43:
In bad shape and only needs $2500 in repairs? I would check these numbers again or reevaluate the needed repairs.
Looking for Advice on a Good Deal - Posted by Shelton_n_VA
Posted by Shelton_n_VA on August 24, 2003 at 23:47:39:
Hello, My name is shelton and I a junior in college and a beggining real estate investor. I am currently working on my first deal. I believe I have a good understanding, but need some advice to fill in the blanks and make this possibilty a reality.
I found a property in bad shape, in my neighborhood, selling for $79,900. I estimated that it needs around $2500 of rehabbing. Similar properties in my neighborhood sell for around $95,000 to $105,000.
I am looking to sign a contract to purchase, with a 60 day contingency clause, and immediately sell to a rehabbing investor for a fee of $2000.
Right now I want to talk to the realtor and do a walk through. Find a contractor that gives free estimates. and begin creating a list of potential investors to flip the house to.
I guess I am wondering if this is a good deal?
IF it is a good deal, does anybody have any advice to help me through this deal?
Re: Looking for Advice on a Good Deal - Posted by Lyal
Posted by Lyal on August 25, 2003 at 06:25:12:
Shelton,
Congrats on jumping in and getting started. You need to be careful with rehabs. They ALWAYS cost more than you think to fix, and it always takes longer.
There is not nearly enough room in this deal for you to assign it to an experienced investor. When add in a repair contingency (to cover what you missed in the preliminary estimate of repairs), closing costs, holding costs, cost to re-sell, etc, you’re at about retail value. Any rehabber needs to make at least 20K to make it worthwhile.
Keep looking.
All the best, Lyal
and the realtor? - Posted by gerald(tx)
Posted by gerald(tx) on August 25, 2003 at 01:51:17:
If it’s being listed and advertised by a realtor, and on MLS, why wouldn’t an interested investor see it and buy it directly? Why pay you a $2,000 fee?
And the owner? Why would he sign a contract with a 60 day contingency to a 20 yr old? Not unless you and Daddy got some deep pockets.