Posted by jeff on July 17, 2002 at 16:05:10:
if flippnig is your game, then the risk is all but gone. but donig L/O and things like your post said has risk, especially when your doing it with 200K homes. if you dont have to hold it then your good to go. but if you plan on staying in the deal like you aluded to then theres not alot of room to play here.
the house is probably in immaculate condition, but i have looked at more houses than i care to mention and i have yet to see one, even the immaculate ones that need NOTHING. the fresh rehabbers would be the onle ones that i could imagine that need nothing, and thats only if the work was done correctly. once there is someone living in the place, work is always required. the switch plates are usually dirty, the pain on the walls are usually finger printed, smoe of the woodwork has usually seen better days, the doorknobs are dull, etc. even the great, expensive houses have these problems normally.
back to that 30K in equity they would like, id like to have 100K in equity myself, but it dont always happen. what they want is of no concern to you, what you need to focus on is what they NEED. mi sure theyd like full price, but make it clear that it aint gonna happen and find out what it actually takes to get them out of this problem and on with their lives. if they nitend on leaving you with nothing to gain, then why would you get involved. investors cant go around solvnig people problems out of the goodness of their heart, if they want to take all the money out of the deal, then they need to find a retail buyer. if they want uot quick then thats where you come in. if they are not having a problem then they are not the type of people you want to deal with anyway. gop with the flip here, it appears to me to be your only profitable situation if they require their 30K. other than that, id tell them to call me when they decide they want to sale their house until then, you got other deals on the line you need to tend to.
it appears to me they dont have problems, i try not to even get involved in properies that are for sale unless theres a good motivational problem in the background. their divorce is a problem yes, but it dont seem to be a big enuogh problem yet to get them gonig, they are trying to get all they can, retailers are their needs for now, give it a few months and see how they feel after a few more payments come due.