Need advice on House I found this is weird.

Need advice on House I found this is weird.

Houston, TX · Member since 2009 · 77 posts · 6 votes

Have seen this house for at least two years sit vacant and finally this weekend a sign is in the yard for sale by owner. Longstory short look at the house and everything is great but a small issue with roof that needs to be replaced and some carpet. The guy was asking 59k to buy or owner finance for 69k. I told him I was an investor and turns out so is he. Somehow he buys properties in bulk from banks and then unloads them. Some unseen. Not sure how he does this but I digress. The weird part is I looked at the house twice and we came up with a price of 45k if I don't do an inspection but 50k if I do. He says he doesn't want to tie up the house for a period of time incase another buyer wants it. At 45k it is a pretty good deal. At 50 it is still a decent deal. I even offered a 500 option fee so I could do the inspection and he said no. Those were his two prices so take it or leave it. I am sure he just wants to flip it but its weird that I can't do an inspection but for the other price. All foundation looks good only thing that would maybe be a problem is AC could not work though it looks fine. Roof was ok from inside I looked in Attic and I could turn the water on myself. Anyone ever dealt with anything like this. He basically said as is no inspection for 45k and 50k if I want an inspection. House is probably worth about 65-70k.

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Real Estate Investor · Austin, TX · Member since 2009 · 171 posts · 46 votes
14y

You can expect a lot more wrong with the house if it has been vacant for two years. Empty houses don't maintain themselves and they may require repair due to decay, vandalism or animals.

Would I buy a house without an inspection? Yes, however not with the amount of discount on the purchase price that you stated and, more importantly, not from someone who was pushing me not to get one.

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  • Houston, TX · Member since 2009 · 77 posts · 6 votes
    14y

    Forgot the roof was just a patch job that he said he was going to do. I even called insurance company and their has been no claim on the roof so that is good news.

  • Houston, TX · Member since 2009 · 77 posts · 6 votes
    14y

    Would you buy a house without an inspection?

  • Real Estate Investor · Austin, TX · Member since 2009 · 171 posts · 46 votes
    14y

    You can expect a lot more wrong with the house if it has been vacant for two years. Empty houses don't maintain themselves and they may require repair due to decay, vandalism or animals.

    Would I buy a house without an inspection? Yes, however not with the amount of discount on the purchase price that you stated and, more importantly, not from someone who was pushing me not to get one.

  • Commercial Real Estate Lender / Syndicator · Dallas, TX · Member since 2011 · 888 posts · 309 votes
    14y

    Just sold one today. The investor did not have an inspection done or request one.

    Red flags though when someone says you can't have one.

  • Houston, TX · Member since 2009 · 77 posts · 6 votes
    14y

    Ok thanks for the input

  • Investor · Cincinnati, OH · Member since 2010 · 1k+ posts · 928 votes
    14y

    Not clear on this, are you saying the seller wanted more if your contract had an inspection contingency (this could be reasonable since the offer is inferior to an offer without contingencies), or are you saying he would not allow a professional inspector on to the premises?

  • Joel OwensBusiness Member
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    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    14y

    Sounds like you have a professional seller that buys in bulk.Typically they try to make the most profit first with the best one and reduce the ones they have too that aren't selling.In the end if they come out on the plus side that is what matters.

    Why not chat him up and ask some more questions.

    How many did you buy in this purchase?

    How long have you had this property on the market??

    Have the properties been moving quickly?

    You want to try to gain insight into his bulk purchase and where he is at divesting the properties and experience so far.

    What would the property rent for once work is completed??

  • Houston, TX · Member since 2009 · 77 posts · 6 votes
    14y

    Thanks guys talked to him at length he does buy them in bulk. How does that even work? He says he bought this one and 15 more. I looked the guy up he is legit. Owns at least 50 other properties. It would rent for 900 to 950. If ac works and I get it for 45 k then another 3. To 5 k for fix up and closing depending on if I do tile for the whole house.

  • Houston, TX · Member since 2009 · 77 posts · 6 votes
    14y

    Thanks that is what I was thinking as well. I even offered a 500 dollar option period so if I didn't buy the house he would keep the 500 dollars. It is just a weird situation I have never dealt with and wanted to see how yall would handle it. Thanks for all the good advice.

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