Long Distance Rehab Help!
Hi:
I want to do my first deal by March of this year. I came across an ad here in NY for 2 rehab houses on one prop. in another state. Asking 79K in a mkt that he says is worth $150k each.
Inv/owner says that one needs about $5-$10k work, and the other about $25k work.
How do I even begin to structure a deal from 3 states away? I
Good Day,
1. First you will need to see the property whether by pictures or you taking a trip.
2. It maybe a good ideal to get a drive by appraisal and/or inspection to see what you have, and what kind of repairs will be needed.
3. Find out if it is an area which people are moving into by calling we buy houses ad in the local newspaper to find out what areas are investors buying in (Location, Location, Location).
4. Get your comps on the property. There is a number of online home valuation sites on the web.
5. Always verifiy what owner says
6. If you are in a location people want to move to, from the pictures of the property you see you can handle the rehab and you can see your profit make an offer!
7. you may want to research the MAO technique in making offers.
Bottom line, it can be done long distance just make sure you have a clause in your contract subject to Inspection or financing in case you need to get out of the deal for what ever reason.
Hi:
Thanks for all the responses..the general impression I am getting is that I need to keep looking for a local deal. This was my gut feeling, but wanted to see what everyone thought...you are the best!
Local deals in NY and very very very difficult to find..need to get creative and as a newbie...not sure what best route is..I rarely see houses that are priced below mkt..any ideas?
And that is why you started looking out of state, I understand. The next thing you can do is find a location where you have relatives living and try to work with them. But on a rehab job you will need to be there!
Long distance deals can be done, not as a rehab project
8-)
In our opinion, a one or two hour drive to a local project should be considered prior to something long distance. Meet with the neighbors BEFORE you buy in the area. Allow them to be your eyes and ears.
"You are the trusted investor who will improve the neighborhood, add value to a depressed property, and offer a substantial fee for future referrals."
Good Luck,
Eric & Rosa
[addsig]
Thanks!
I will definitely heed....and check out the marketing forum!!