I think I found the perfect house to do a flip with the owners are selling because there tired of renting it out they owe 47k on a FHA assumable the market value of the house is 75k with 8k of repairs there advertising 60k for sale I believe after talking to them that theyll take 52k…Im going to go for it Ive spoke with a few people that sound like there in the market to buy you know the “I BUY HOUSES” ads. the next thing that I need I think is to make an offer for the home, and GET a contract…then take it to a title company…Am I on the right track or what…
I would recommend you get a hold of jackie she frequents this board. A person with her experience would be worth the shared flip split to have her show you the ropes on your first one.
Pat
Posted by Stacy (AZ) on January 16, 1999 at 11:53:11:
Keith-
Sounds like a potential deal. Make sure the FMV is 75K (sounds like you already did), and make sure the repair costs are 8K. If you think they’ll take 52K, make sure to negotiate starting lower so there’s room to adjust. Who knows, they may surprise you and accept less. Ask what their ALL CASH bottom line is, first.
Get it in writing right away. Make a contingency that the repair estimates will not exceed x amount and that FMV is 75k as presented to you, and, of course financing. Once you have their committment to sell to you, you can get out of the deal if it doesn’t look good after you collect the rest of your info. I always get it in writing RIGHT AWAY ! BUT ALWAYS LEAVE MYSELF AN OUT.
Re: Need help(hand held) - Posted by Alexander (Fl)
Posted by Alexander (Fl) on January 18, 1999 at 09:00:59:
Hi Sandy:
RE: your email “What PART of Miami are you seeing this kind of market? Give a sister a clue! LOL”
I am referring to the investment activity present in Miami in general and the short time it takes to flip or sell a property.
I sold a house located off Miami Avenue (Little Haiti)Dec 24 to a family on a L/O that I had closed on Dec 12, 1998.
I made an offer on this REO the same day it came out on the MLS and bid OVER listed price for it. By afternoon, there were four additional bids on the property from other investors.
This is not unusual for lower-end properties. lots of people are looking for these cheper properties to rehab, live in or resell.
You can call me if you’d like to talk about this more at (305) 461-1991.
talk to a realator you know. They can get you comps
on properties that sold in that neighborhood.
Go back only about 6 months and use those. Get at least
five comps. talley them by no. bdr,bth,gar,age,sq.ft.
list price,sale price, etc. Then average them out
If you need a form I can get you one. When your done
you will know what the house should sell for.
Posted by Soapymac on January 16, 1999 at 13:25:48:
Keith,
Here is where a broker in your area can assist you. The key is finding one to work with…who understands that you are an investor. That being said, how do you find the broker? What do you look for?
I’ll let others add any other qualifications that may assist you. I am speaking as a RE agent who works with investors (on a non-exclusive basis in some instances):
A broker/agent should be an investor, also. Maybe they investing attitude is “buy and hold,” or “flip,” or investing in rental units…or something else; the idea here is that they ARE an investor.
Make friends with one or more of them. They may have other investor contacts…which COULD be another wholesale flipping source to you.
They can do “comps” for you, but possibly not. They take time. Instead ask if you could use their computer to do your own comps.
The old “buy low-sell higher” gambit. If you dig…and find a home that will sell quickly with just some cosmetic repair…that you are willing to do…go ahead and do that, then list the house through your broker contact. Let him make some money (commission) and he will be very happy.
There are more, but I’ll quit with this one. Use your broker as a source of deals. If they know what you want, they may know of one already, or be able to find one for you. This is a variant of the “bird dog” referral source…the difference being the amount of the referral fee (in this case a commission.)
Hey that was good advice… I have a broker thats been trying to get your business for quite some time now… guess this is as good a way to put him to wirk as any… he also mentioned another lead… way to cool, he said he was going to check the taxes on the place… So whats the next step…
Posted by Stacy (AZ) on January 16, 1999 at 14:05:55:
Roy is correct. The best place to find out FMV is thru the Comparable Sales Report (Comps)in the MLS, which means you have to be working with a realtor. You could offer to pay a realtor, say, $25 to run comps on this one, or if you find one that’s agreeable, s/he’ll do it for free.
If you can’t do this, and you are running out of time on this deal, try www.experian.com. I’ve used them in a pinch, and it only costs $10.
