Newbie with 2 potential deals - needs advice - Posted by Naz

Posted by Ronald * Starr(in No CA) on September 21, 2003 at 07:52:26:


The first property is terribly overpriced. I?d suggest you either do nothing or make an extremely low offer. You should be able to estimate the loan amount by looking at the original recording of the deed of trust or mortgage. If it is greater than the amount you would pay for the property, move on. Value: $165K X .70 is $115K-$50K repair price = $65K. Offer $50K or so.

Second property. Where are you going to make a profit here? Are you buying for long-term rental hold? That is the only thing that makes any sense to me. But, since you do not mention the rental value, it is impossible to make any judgment as to whether it is something to pursue. The fact that the owner will carry a loan is not particularly important. The issue is would that loan have better terms than you could get with an institutional lender? Lower down payment? Maybe zero down? Lower interest rate? Given that the owner is asking full market value and has stated an intention of pulling a credit check, this sounds like a sophisticated investor. I strongly doubt that you will get any kind of attractive deal here. However, you never know until you ask.

Good Investing***********Ron Starr*******************

Newbie with 2 potential deals - needs advice - Posted by Naz

Posted by Naz on September 21, 2003 at 24:59:52:

  1. Have a single family home that been on the market for almost 1 year with a realtor. Asking price is 115K (may be able to get it for 100K), needs extensive work - probably 45K (everything from foundation to mold). In a nice neigbourhood, backing on to a golf course. other properties in the are sell for 165-170K (fmv). Its a strange looking house - 70’s contemporary type - would appeal to specific type of clientele. Divorce situation - seller needs the cash, and has a mortgage, but wouldn’t disclose amount owed. Taxes - 3k. We estimate the repairs…etc will take about 3-4 months to complete. - Need advice as to what to do…

  2. Second house (FSBO) - again nice neihbourhood - built in 80’s - asking price is 119K - we estimate FMV about 113K based on recent sales. no mortgage on the house, however the owner is willing to finance some or all with credit checks (would be ok). Taxes - 2K. Not sure what we can do with this one, maybe rent it since flipping it may not produce anything immediately - need some creative suggestions on this one please