Found a House! Now what??

Question

So I found a possible house I think I can do a deal with. But I have no idea where to start or what my exit strategy is. Senior citizen, original owner since 1958! Owns it free and clear and needs to move out to live the rest of his days. Needs some work but nothing major. Redo kitchen, bathrooms, carpet and paint. I'm guessing $15,000. ARV about $100,000. 1300 sqft, 3/2. In your typical working class neighborhood.

So what would you do? I have no cash, but since I'm new I feel like an all cash offer he would take. So hard money or should I just wholesale it? Not quite comfortable with options or lease options yet.

Thanks!

So what would you do? I have no cash, but since I'm new I feel like an all cash offer he would take. So hard money or should I just wholesale it? Not quite comfortable with options or lease options yet.

Thanks!

Jesse Ramirez · Answer

What part of Texas are you from?

Jesse Ramirez · Answer

Great point Eddie!

If you'd like to team up I'm here to help Chris.
:)

Eddie Ziv · Answer

Chris,
Correct me if I'm wrong but from your question, I gather that you have neither experience nor knowledge about this business. Finding a good deal is just the very beginning of the process and actually should be the last. Gathering knowledge and a team of people you trust is crucial. If you think to wholesale it and you don't have the money or the credit to finance it, you need to know the process of  double closing and to have a potential reliable buyer. The fact that you are dealing with an individual and not an institution or a realtor, is good but at some point you will need to bring a lawyer for the contracts and that can "scare" old people... If you go for hard money, you should ask yourself how long can I hold on to the property before I can no longer afford the payments or faced with balloon I cannot afford?
I'm not a wholesaler but If this is your first deal, my suggestion is to team yourself with one on a fifty-fifty deal and learn from the transaction. Find someone you would feel comfortable with.

Good luck

Jerry Tolle · Answer

If the numbers work, wholesale is the best

Jon Frame · Answer

Ask him how much he is asking for it. If it's 50k or below it would be a good wholesale deal. Anything more than that would be pretty tight in this market. I would start an offer of 40-45k and see what happens.

Good Luck !!!!!!!!!!!!

James Hiddle · Answer

Wholesale it.