OfflineSO FIRED UP!!!!!!!!!!!!! Long post but so excited couldnt help it!
After Conference call I went into total Real Estate overdrive!!! I started doing Real Estate at the J.O.B.!!!
As I was studying Deans book about buyers I noticed in the paper a duplex being sold for 30K. In my neck of the woods... unheard of for that price so I called them while I was working, which was about 7pm (work 10 to 10... yea 12 hr shifts).
They were so highly motivated to sell!!!! They just wanted out.. they had there own business, having the duplex was just being too much for them, they dropped the price 4 times!!
New Doors, new windows, fresh paint... I'm going to take a more thorough look at the house come Monday, but even a little messed up its still a deal.
Oh yea, they OWN the duplex FREE and CLEAR!!! No messy mortgage to take over. That's right, I forgot to mention that they said a reasonable offer will be accepted... what??? I can possibly get this for less than 30K?!?!
But alas... poor me, literally. I have no money, and my credit is shot to heck...... ...wait!
I have a hard money lender with a credit score of 713 and NOT ONE NEGATIVE MARK on her credit that was more then happy to work something out with me... like getting an extra $50 dollars a month as I pay the loan back and, if I choose, $5000 if I pull a home equity loan out on the house.
OPINIONS AND ADVICE IS WELCOMED!!!!!!
I havent yet decided what to do, I have a couple of options...
1. To move in the duplex myself... with no mortgage or anything of the like my rent is cut more than half by just paying back the loan+50, which I probably won't even have to do because I'll rent the other side out which will cover that expense... plus a little cash flow! The annual tax is 600 max (the owner actually thinks its less she didnt have the paperwork right in front of her). I could live comfortably until my next deal. (If I do this I consider it a deal cause it allows me to live for free pratically, I might not make a lot of money short term from this but almost every penny of my paycheck is mine, that'd be nice)
2. IF anything is wrong with the house, fix and flip, get it appraised, check rates for a equity loan, rent it out based on that. More risk if I can't get a renter, but I don't see that happening, total renters market where I'm at. I mean if I buy it for say... 25K fix flip appraised for say....75K... all I can say is wow 50K profit
The duplex is separately metered so renters would carry there own utilities
Again, opinions and advice is WANTED AND WELCOMED!! If I'm doing something wrong or you think its a bad idea or if I should do something a little extra PLEASE let me know, I want this deal to work
Thanks and sorry about the long post
EDIT: Btw, I used NONE OF MY MONEY TO MAKE THIS DEAL HAPPEN!!! A potential 50K profit OR live for free!!! And even if I don't get a renter my "rent" would be cut in half!
Moral of the Edit... You get nothing if you do nothing, let no money and no credit get it your way and your already cooked in this field. The book shows you EVERYTHING, Profit from real estate right now! A little advice from my personal experiences... ACTION and NETWORK are EVERYTHING. How are you going to get a hard money lender if they don't know your in the field?? How are you gonna get the house if you don't call them?? The buyer if you don't advertise?? Worse case you get a no... and you look for the next yes.. don't let fear rule you!!!
Knowledge is Power
- Pimpedoutgeese
Allow your fear to gently pass. Then genuinely ask yourself,
“What needs to be done?”
What is the home worth? You can do whatever you want as long as it is a great deal. Do you have buyers? Also, correct if I am wrong but you have a hard money lender that will give you a loan and you have to pay her $50+ or is it a credit partner? Typically HML have very high interest rates, only good for short term but if you mean a credit partner than more power to you! Just think about your needs, lump sum now or cashflow...
Good luck!
>>>>NEVER give up, and know that the SKY is the LIMIT. We are OURSELVES worst enemy<<<
Good luck!
Actually I'm not looking to sell it, just rent it out.. and your right it's a credit lender not an actual hard money lender per se... and i believe I might get both, a large lump sum and cash flow if I pull out equity and rent it out to cover equity plus cash flow... When I actually go to take a look at the house, I want to see if I can get them to cover the appraisal cost. I've drove by the house before... I'm sure it's worth well over what they are asking for, but still gettin an appraisal.
EDIT: I just found out the house and surrounding areas of the house range from 52K to 71K
http://www.eppraisal.com/home-values-63-pittsburgh-rd-lyndora-pa-16045-1...
So how do I setup someone to look at the house?
Allow your fear to gently pass. Then genuinely ask yourself,
“What needs to be done?”
I am veryyyy impressed. You are moving fast my friend. If I were you I'd move into the place, and rent the other unit out for a steady income. You'd be living rent free. Hold this baby for a while and it will increase in value. Great job! Keep us posted and let us know when you view the property on Monday.
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
Hey you are from PA, me too. I am more towards PHILLY, what do you mean "how do I setup somebody to look at the house? you mean appraiser or potential tenant? servicemagic.com help connect you with various appraisers,just choose the best one. Tenants- put ads up in places like craiglist just think about the target area you want-are the younger-middle age or older? The younger population tends to go online for everything meanwhile the older might take a look at newspapers. Make sure you know what is the rent like in your area.
Good luck!
>>>>NEVER give up, and know that the SKY is the LIMIT. We are OURSELVES worst enemy<<<
I meant appraisers. After work tonight I'm goin to take a look at that sight and see whats goin on. Yea I'm in PA, about 29 miles north of Pittsburgh. Originally from CA though, only been here for about 3 years.
Allow your fear to gently pass. Then genuinely ask yourself,
“What needs to be done?”