Re: Newbie’s first big blunder - Posted by Ronald * Starr
Posted by Ronald * Starr on June 27, 2001 at 21:16:10:
Calm down. Take a couple of deep breaths. Now relax a bit. There, doesn’t that feel better?
Don’t jump out of it yet.
Here are my suggestions.
Find out what the market value will be fixed up. You might ask your beginner agent to ask some more experienced agents to help her do this for you. Learning experience for you and her.
Get some estimates of the cost to fix up. You have some information about what needs to be done, perhaps that will do it for you. Get in two or three handypersons or contractors and get rough figures, at the least. Ask about alternative methods of handling the odvious problems.
Consider tearing off the brick and replacing with less expense siding.
Only when you have a better picture should you throw in the towel. Meanwhile, continue running your advertisement Make it clear that this is not a cosmetic fixer. When people call, be realisticly negative about the property so when they see it they are prepared and not shocked.
Try to find some positives to encourage potential buyers, especially the “potentials.” Ron’s Rule # 128: When you don’t have a good property to sell, sell the potential.
Do not give up until your time runs out, even delay the purchase a few weeks. These sellers are not going to mind. Better for them to wait a few weeks with a (more or less) certain sale than to go back out on the market again, starting over. You never know when the most generous buyer in the county is going to come see and make you an offer that makes you a profit.
Meanwhile, you might want to lower your advertising costs. Put it in the local free advertising papers and run it only on Sunday in the major paper. Could you put a “for sale” sign on the outside, with your phone number on it? Hmmm, probably not a good idea. Here, get somebody with a very run down house to let you put a “for sale” sign in front of their house. Best if it is on a busy street. Then redirect the callers to your rough gem.
Good Investing and Good FlippingRon Starr**