Posted by Chris in FL on March 30, 2006 at 13:23:35:
Amen to what Gene said. It doesn’t sound like you have done much studying at all yet. Some people study and never take action, and that is bad, but taking action without knowledge could be disastrous. Start with some basic R.E. investing books, study on this site, and joining a local REIA (real estate investor’s assoc.) would probably be a good idea. Good luck!
NEED HELP PLEASE - Posted by Kenyon Harris
Posted by Kenyon Harris on March 29, 2006 at 22:45:17:
I’m a newbie and I found a motivated seller thats paying two house payments,the house was $92,000 but has been reduced to $87,000.The house has been all fixed up except the carpet.
I’m excited and scared at the same time because I don’t know what to say or do,I don’t even know what type of forms or contracts to get. ANYBODY THAT HAS EXPERT ADVICE PLEASE PLEASE HELP ME.
THANK YOU VERY MUCH!
email me @ tymez10tymez10@yahoo.com
or write back thank you.
Re: NEED HELP PLEASE - Posted by Natalie-VA
Posted by Natalie-VA on March 30, 2006 at 11:42:55:
Kenyon,
The first thing you need to do is figure out what the value is after repairs. Also, figure out how much the repairs will cost. Then come back and ask us questions.
By the way, the listing price may have nothing to do with the actual value…it might have been overpriced to start with.
–Natalie
Re: NEED HELP PLEASE - Posted by The Frisco Kid
Posted by The Frisco Kid on March 29, 2006 at 23:40:29:
Kenyon
Don’t get too exicited, you don’t want to make the number one error in investing, becoming a motivated buyer and paying to much.
So far it looks like you found a property that couldn’t sell for $92k, and it has been only been reduced by about 5% at the present to $87k.
What do you have in mind and why is this a good deal for you and what do you intend to do with it? If you can’t tell us that, it’s time to rethink your plans.
Re: NEED HELP PLEASE - Posted by Joe Kaiser
Posted by Joe Kaiser on March 29, 2006 at 23:17:05:
Kenyon,
Don’t let your excitement get the better of you. If the house is worth
$92k, paying $87k for it is more than full price from the seller’s
standpoint, and that can’t possibly be good for you.
Most investors would not consider this to be a good deal.
Joe
Re: NEED HELP PLEASE - Posted by Kenyon
Posted by Kenyon on March 30, 2006 at 09:25:53:
Thanks to all who replied! I was just excited I guess.Alot of people say they don’t know everything well I’m a person that don’t know anything in REI. But very eager to learn so what do I look for in a property how do I know if it’s a deal or not. So reduced properties are not the ones investors look at 97k been reduced to 87k. I have to look for properties like what? explain please all I’m asking is for a little knowledge in this area so it won’t happen ever again.
THANK YOU ONCE AGAIN!
Re: NEED HELP PLEASE - Posted by Kenyon
Posted by Kenyon on March 30, 2006 at 09:12:04:
Thanks to all who replied! I was just excited I guess,and if a property has been reduced it’s not a good property to invest in, so tell me what do I look for in a property? how do I know if it’s a deal or not explain please.I wish I had someone here to show me the ropes but I don’t I don’t want to make a major mistake and it cost me.
Re: NEED HELP PLEASE - Posted by John
Posted by John on March 30, 2006 at 10:30:47:
After Repair Value (ARV) X 65% - repair costs = maximum allowable offer (MAO)
Do not underestimate repair costs
Use this and then you have something, there are other factors to consider but this is a start
Re: NEED HELP PLEASE - Posted by Gene
Posted by Gene on March 30, 2006 at 12:47:32:
If the has been reduced or not says nothing about if it is a good investment or not.
The numbers are what makes it a good investment.
You need to know…ARV (after repair value).
Then deduct: holding costs, repair costs, selling costs, extra for unseen repairs/issues, and your acceptable profit.
If the number you are left with is more than what you can buy it for…then it might be a good deal.
I would suggest reading a couple books on basic real estate investing. A motivated person could read a couple books in less than a week. Then you would have a much better idea how to figure out if this is a good deal.
Gene