Posted by Karl Grube on March 16, 1999 at 15:51:38:
Wholesale Real Estate: This is the lowest value of a property as possibly established by a … (1) local assessor of property taxes (2) bank appraisal (3) or value of a property that just breaks even on a rental schedule.
Retail Real Estate: an upper end price of the property
as possibly determined by location such as (1) significant trees, water amenity, golf course, city park (2) market estimate by aggressive real estate agents wanting the listing (3) a value of high priced land and not the building. Many of these properties have the buildings bulldozed for new construction such as $100,000 building lots.
YES you can get property assessed for free! Simply look up the local tax assessors value for the property
at your local city/county court house, usually at the tax assessors office or register of deeds.
I recommend that YOU only focus on buying duplexes …
no other property. In owning duplexes the rental incomes start to make the purchase price justified.
There is always a renter for a duplex; there is always an investor buyer at wholesale for duplexes; and there
are owner/buyers who want a duplex lifestyle.
I am an aspiring investor who is a college grad. with another major. I am about halfway through the Sheets course and have learned a great deal. Still fuzzy about some of it though. I wanted to get my feet wet so I started making some calls and found a duplex that is on the market for 69,000 and has been for about 8 months. It is owned free and clear and the people want to get rid of it as it was handed down to them as an estate. It is currently generating 785.00 per month. They don’t want to help with financing and I have no equity to use as collateral. My credit is low but good. What should I do? Should I try to get a loan from a bank or what? Should I leave this thing alone until I learn more? Help! Any honest suggestions would be appreciated.
Posted by Karl Grube on March 15, 1999 at 20:16:15:
Find out the assessors value for the property. Offer cash at the assessors value. Chances are the property is much less than $69,000. If the seller wants cash and they all do … offer a 25% discount from $69,000 if you think the property will appraise at $69,000.
Strange things happen to the human psyche when cash money is put on the table. Be sure to put a clause in your offer like: This OFFER is subject to a bank appraisal acceptable to the buyer. Banks will loan at 75%-80% of appraised value. ONLY buy properties at wholesale value not real estate agents market estimates. Real estate agents overvalue properties by at least 20%. If he accepts, YOU have bought a discounted duplex! (kwg)
Posted by Karl Grube on March 14, 1999 at 12:17:33:
Try a short lease/purchase contract. When you put down #10 $100 bills in front of them as first payment, they will enter into a 2 year contract and reasonable purchase price.
I buy property using the assessors valuation not an appraisal by the bank! In Michigan all property sold must now be registered with the assessor, thus assessments are rising to full market value. YOU must buy on wholesale not retail!