Todays Great Idea
Yesterday I had this idea. I ran some searches on MLS. I picked one zip in my city then I ran 95+ days-on-market & vacant. Keywords ‘motivated’, ‘desperate’, ‘fixer’, ‘tlc’. Say I got about 100 properties. I ran these against title and guess what about 80 of them were listed at the liens plus commissions & closing. I called the agents of the 20 that had enough equity to play. Guess how many agents I got a hold of during normal business hours? None! I left them all messages that I had a buyer willing to pay a number that was about 80% of their listed price, only one called back to say they wouldn’t be interested.
Right now I have an ad running everyday in the paper. I used to get a few calls on it in the winter but now it is buried amongst copy cat ads. I have about 30 bandit signs up. I have craigslist ads posted everyday. I am getting no calls. Does anyone have any ideas on what I can do today? Should I keep going into more zips with these searches?
Have you tried direct mail or door knocking?
$100K house with $50K equity suggests the mortgage balance is $50K. I am assuming that the unpaid mortgage payments are arrearages.
$100k was the repaired value. What does a rehabber get if they buy it for $68k and there is a $50k mortgage on it?
Chris
I guess your right. "Equity" means principal owed, it would seem.
Well I had trouble following it too. First of all the numbers add up to 97k, not 100k. Equity is usually assumed to mean what the homeowner has in it, in other words current value of the house minus leins.
I would try studying some real life examples from these forums and see if you can follow the logic. I think you will be able to figure it out when you read the replies.
Good luck,
Chris
chris, maybe we are on a different page all together.
a realtor would have nothing to do with my transaction.
I only want to get the property under contract and assign it to a rehabber ASAP. Three players are myself, the owner of the house and the rehabber.
I understand that, but the rehabber is going to have to sell it when he/she is done, and usually using a realtor is the best way to get top dollar quickly. Even without the realtor, chances are it will be sold at something of a discount to move it quickly or that the rehabber is going to want to make that amount for the hassle and expense of holding and selling it.
I am trying to show you how the person you would be selling it to would look at the equation. They are the ones coming up with the money and doing most of the work; you are "just" finding the deal. The person buying from you has to see the profit to be interested. Face it- the person who can come up with the money is going to make most of the money. If you wanted to make more on the deal, then you would need to get a loan and do the rehab, hold, and sell yourself. Then there would be about 25k in it for you.
Chris
Any other comments/ or suggestions?
[addsig]
Once you sign a contract to buy a property, you need to buy it.
First, it gives you discipline to calculate the correct price. The reason investors cannot assign because the investors do not do his homework, to come up with enough spread for the next guy. It forces you to do your homework, it is a good discipline. it is the correct price, you can go get hard money to close the deal yourself. need to have enough spread