OfflineHey Guys.....Just wanted to get some opinions on what some think the "BEST" way to purchase this property is?
(I know what I think is the BEST, but I want to see what everyone else thinks..) So, Here's the Deal:
I Recieved a Lead from one of my AD's on Craigslist on Thursday, Guy seems to be "MILDLY MOTIVATED", But we'll see what happens, He wants to relocate closer to his J.O.B. Anyway, It's a Beautiful SFR, 4BR, 2.5BA, 2,300 Sq.Ft, Built in 1987, This Babby only needs approx. $10,000-$15,000 worth of REHAB done to bring up to RETAIL Condition(Roof Needs Replaced, Heating System Needs Replaced) Has New Carpet and Windows and the property resides in an EXCELLENT AREA. Homeowner Owes: 1st Mortgage of $200,300 and a 2nd Mortgage of $26,800 Totals: $227,100
Now, I ran COMPS of No further back then 6 months ago, and Most COMPS are LESS Than 1.5 Miles away with same Bedrooms & Baths, Square Footage is VERY Similar, In other words, the COMPS are Accurate.
When I Averaged out the COMPS to get my FMV or ARV, it came to: $321,188 -REPAIRS = $306,188 So, approx profit potential = $80,000
Now, Here's the thing, I could take this property "SUBJECT TO"(Which is my favorite way to aquire property, then WHOLESALE the property) Or I could Offer a "LEASE OPTION" on the property and SUBLET, Or I can just pay "CASH" and ASSIGN the Contract, give me your feedback.....SULLY
YOUR HERO, SULLY
Ok Sully. I think you should just go ahead and do the renovations. Do a lease option, and based on if you think you can get a buyer, get it sold. But if you think getting it sold is gonna be shakey right now go ahead with lease option. Now you tell what you think about that. I am new to this,so I just wanted to give my two sense to see if I am applying what I am learning properly. So do leave your feedback on that. To better improve my knowledge. Thanks... But either way I think you have sweet deal. Also, if you can school on my approach to start out. Thinking of assigning deals to investors for now, to kind of get my feet wet. And see about getting a deal on pre or foreclosed home.
Kingjuss,
I got my mind made up.....
www.Kingjussinvestors.com
www.jussinvestors.com (buyers site)
Sully...I don't have that kind of cash laying around! :)So...
LOL!!
I would buy "subject to" and find someone to lease option...you don't have to finance, there's no money out of pocket and if they don't excercise the option you keep the downpayment. Sweeeeet deal! I don't know NEARLY as much as you do but this is my 2 cents...Let us know what you decide.
(BTW-I think you're awesome) "CLASS DISMISSED!"
Dawn
Life's a Dance you learn as you go...GET HAPPY FEET!
"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie
Sully make life easy. Assign it for $7500 in cash.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Yeah, that was my second choice! LOL!
Dawn
Life's a Dance you learn as you go...GET HAPPY FEET!
"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie
Sully
This is what I would do too. Make life easier! You found a pretty good deal there! Put some quick cash in your pocket.
Sissy
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Hey sully
i have been searching through my think a little different kit but I cant find anything about subject to. Can you explain to me what it is and the process. Is it similar to assigning?
Where is the house? is it in your area that you are familiar with? By the way - I have NEVER gotten a hit from craigs list....... Good luck with your deal! Anyway you do it sounds like a winner!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Wow!....Thanks for ALL the Reply's! You know CBR(Matt) you read my mind, But here's the part where I'm up in the air, I Planned on Assigning the Contract the entire time, but what type of deal should I do? What I mean is; Should I write the Deal up as a "SUBJECT TO", ALL CASH Deal, or "LEASE OPTION?", SULLY
YOUR HERO, SULLY
What kind of deal is your end buyer looking for?
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
Sorry I'm in wrong posts.Didn't see where to delete this.
Jason S.
San Diego, CA.
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You want to write it up as "conventional,FHA, or VA" and use a 90% loan. That way if your new buyer doesn't have all cash you are protecting yourself and creating another "out". Many,many times I have written up the offer as all cash and then I ended up getting a conventional loan instead. It tends to upset the sellers and the sellers real estate agent, but that's ok because it builds character}:)
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Nice deal you got going there. I'm very close to locking up a property, will post details later. But Congrats!
"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." — Peter F. Drucker