Vacant Propertys -Tips And Info
Here is some babble by me as requested in an e-mail by another member.. Hope this helps others..
I personally like to meet with owners in person, if they live locally GO SEE THEM it's time consuming yes, but deals only are made in person, I have had owners many times take my offers on the first contact and we close a few days later (signing of contract or deed or note, etc.).
Best three, oh wow, that's tough question many were good, but what comes to mind more is a horror story, I purchased a vacant rehabber that turned out to be a no-go, the expense, permits, etc. would have exceeded the value of the property rehabbed.. (this property was classified as "uninhabitable" by local gov, unbeknownst to me).. Beware of anything that is a major rehabber (structual work) and ALSO (other horror storys) verify that there are NO outstanding citations by the city/county that the property is uninhabitable, (some owners tear these posts down) and should you buy a house with an uninhabitable status by the gov. you will spend much heartache and money to try to get that resolved..
On vacants those are some of the more serious problems that can bite ya in the butt.. But for the most part vacant properties are previously inheritated, seniors now in a senior home or with family, owners moved away, investors who don't care to manage the property and are lazy, rentals not filling, etc..
On vacants for the most part I prefer sub-2s if there is an existing loan, and if the seller has substantial equity a note with monthly payments, if little or no equity I give balloon notes to the sellers, and if I get a hell of a deal I'll cash sellers out at a substantial discount for their equity and take deed with a sub-2.. For the most part on most of my deals, I won't touch the deal unless I take deed to the property.. I don't care for land contracts or l/o's.. I prefer having deed knowing the property is mine and not have to worry about an owner changing there mind or backing out or dissappearing, etc. Though you could always have a 3rd party (contract services such as many title companies provide) do the servicing and hold the executed deed for you..
Chris[ Edited by rajwarrior on Date 10/28/2003 ]
cky,
you should take this and submit it as an article to the site. i feel like it'd be beneficial to enough people. more people would get to see it that way as well! you have some good stuff in here.
Ill second that! This should definitely be posted as an article.
[addsig]
I'll go ahead and add to this in addition to re-writing this post and clarifying it then submit it as an article.. Thanks guys..
Chris