Posted by Jack on January 29, 2001 at 22:18:38:
Put an option to purchase on the property, then sell the option to another investor. Good luck! —Jack
Suggestions - Posted by Greg
Posted by Greg on January 29, 2001 at 22:14:26:
I have this seller who has a house that is trashed…although they still live there. They will take 14,000 for cash, or 16,000 with 2,000 cash down, I have none!
It was appraised two months ago @ 48,000 grossly over done. I think the lot is worth 25,000 but was unable to get the the government offices today. Will do that first thing in the morning to make sure it does have that value.
Any suppeston on how to get a around the fact that I have no money, and tie it up long enought to flip it.
thx
Greg
Printing money… - Posted by Steve(NC)
Posted by Steve(NC) on January 30, 2001 at 09:57:13:
1-Due your due diligence and check the comps and the amount of work needed.
2- Get it on contract somehow…(a)either an all cash offer with an out clause. (b) a option to purchase it.
3- ONLY AFTER IT IS ON CONTRACT…start calling investors who buy houses (to flip it to), and stick a sign in the front yard and an ad in the paper.
4- once the buyer/investor is found set it up as a sim.closing or assign/sell the option.
I prefer the option method but some sellers dont. If these numbers are good you could sell this thing in a few days if the investors in the market are hot now. Dont get greedy. Take what you can get…make some cash…get some experience…and move on to the next one.
Steve(NC)
P.s. If you have purchased Brittons quick start course…you would be at the bank already on this one. Thats why it is like “printing money”.
How About This… - Posted by Rick Wheat
Posted by Rick Wheat on January 30, 2001 at 04:04:20:
What about getting someone you know to put up the $2,000, (if that is absolutely, positively the least he will take up front for the property). You can give your “lender” $3,000 back when you cash out. That’s a pretty good return on his money.
Or, what about getting him to pu up $5-6,000, paying him the same $1,000 additional for the use of his money. This way you have some extra money to use to clean and spruce up the property, (or possibly just pocket the extra money). The return to your “lender” is still very good based upon the time he will have his money out.
You might even make the payment of the $2,000 to the owner dependant on him cleaning the place up. He gets his money when the property is “broom clean”, and his moving van is loaded up with the engine running.
Try it.
GOOD LUCK!!!
Rick Wheat
Re: Suggestions - Posted by LeonNC
Posted by LeonNC on January 30, 2001 at 24:49:00:
Greg,
If you want to flip the house to someone who will renovate it you have to know what it will be worth after repairs have been done. Get comps from a realtor, see what other houses are going for in the area.
Determine accurately what repairs will cost. Inspect the house and do everything you can to get a good guess of what they will cost. Don’t take too long figuring this out but get close.
Then take the after repaired value and multiply it times 70%. For example if the house after repairs was worth $100,000…( 100,000 x 70% = 70,000). Then subtract the amount you came up with for repairs (70,000 - 15,000 repairs = 55,000). 55,000 would be your maximum allowable offer if YOU were doing the work. Then subtract your profit of maybe 5000 or whatever from the 55,000 (55,000 - 5,000 your profit = 50,000). So 50,000 in this example would be your purchase price offer. If the $14,000 you mention is below what you come up with then you’re in the money.
Offer the seller the $14,000 cash with maybe a $100 earnest money deposit. If they want more tell them you’ll give it to them after your INSPECTION PERIOD! I like to use an inspection clause which allows me hopefully 3 weeks to do all the inspecting I need. If the inspections are not to my liking then I am released from the agreement and my deposit is to be returned. What this will do for you is give you 3 weeks to flip it to another investor. You can assign your agreement or you can write up another one with your buyer. If you want to assign the agreement make sure your contract is assignable. If you get it cheap enough and it’s in the right area you should be able to flip it.
If the numbers work then go sign the agreement with the seller. Then do everything you can to flip it. Go do the work now, this might be a good deal.
Good Luck
LeonNC
Re: Suggestions - Posted by BillW.
Posted by BillW. on January 29, 2001 at 22:50:29:
greg, How about offering 18,000 with zero down. There seems to be plenty of room.
BillW.