I have colleague at work that is looking to sell his home. He's attempted to contact several contractors all to no avail. He's also not happy with his real estate agent and is fixing to drop them. He also asked me if I knew anyone that could help him sell his home. He's not so much concerned with selling quickly as much as he is wanting a good deal on selling the home because he is willing to put in the cosmetic upgrades. I feel this is a great opportunity for me to get involved in a real estate deal but I am unsure how approach the situation. Mind you that I am a newbie to REI here in San Antonio.
My questions are:
1) How do I approach the situation?
2) How can I help him?
3) Should I reach out to some contractors or realtors here on BP to see if we can work together on this deal?
4) What would be step one in a scenario like this?
5) Should I even get involved since it is a work colleague?
Any assistance or advice would be much appreciate!
1) It really depends what hat you're going to wear, and if you're not a realtor it may be tough. The best way could be a friend trying to help.
2) If you have a license, give him your best estimate of what it could really be sold for and let him know you could list it for him. If you're an investor, you could make him a cash offer, but if he's not in distress/highly motivated, it sounds like something to go on the market.
3) You could try to get him a rockstar realtor and try to get some type of a referral fee. In regards to contractors, if there's no serious damage that needs repairing, estimate are not that hard to make on your own. If he's set on fixing and getting a better price, you could meet a few and vet them out to see who is best.
4) Step one identify how you can help him. Ask him if he'd rather sell as-is instead of spending money to rehab and definely have to list on the market after that. If he is not so much in need to sell quickly as you said but get his price, let him know what the price will be after fixing, and be sure to mention that no matter how much he puts in, the resale will be tied to whats going on into the market, not what he's spent, mortgage included.
5) Its fine to get involved as long as you know the best way to approach him and how you can be involved while still helping him reach his best interest. But as a side note, a lot of homeowners are unaware of true market value so the best you could do for him is get him the true value of his home. Even if its less than what he expects, you're giving him facts, and there's nothing more valuable that that.
Wish you the best of luck! And if he decides to fix it up, that will take time, so why not hurry and get your license so you can list it for him when its ready!
Not really sure how you can benefit from this. If he was telling you he really needed to sell and was open to some sort of creative financing or handing the property over to you, sure. But you say he is in no rush to sell the place, isn't happy with his agent. In other words he wants top dollar and has likely overpriced the property.
What deal do you see here?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing