I received information on a house that has been vacant for over a year and the home owner is thinking about selling. I haven’t seen the inside of the house but according to my source the owner said it was pretty trashed inside. He was planning on remodeling it and started the demo but didn’t get to the rehab part. I am very new to all of this and really just started trying to learn in early December so I don’t even know what I don’t know. I have a few questions that maybe you guys here on BP can help me out with.
1. Can I bring in a home inspector to look at the house before I put it under contract to help with the rehab estimation? He is a friend so he said I could walk the house with him to learn what to look for. And yes I understand that the home owner would have to agree. I just want to make sure I’m not violating some law or something.
2. Is there a good list of questions out there I can ask the home owner to find out more about the property the first time I contact him? He is expecting a call from me and I want to sound as professional as possible.
3. Since I am so new to this I am willing to partner with someone here in AZ if they are willing to teach me and my business partner along the way.
Never mind on question two. I asked before searching BP forums for the answer. Rookie mistake..
Also, on question three I’m looking to flip this if the numbers work out. Should have put that in there.
Number 1 thing. If the house is trashed financing through a traditional lender will not happen. You will need to pay cash or find a hard money lender that will finance the deal.
Yes, bring someone along so you can get a rehab estimate and make a list of what you need to do. This list must be accurate. You have one shot to get the estimate right so you can negotiate the proper price for the house.
I would ask the owner what the condition is of the house and ask him why he is selling it. He will probably tell you a story. Listen listen listen and let him know you can help. Book an appointment asap and see the house and meet the owner. You don't want to drag the phone call out. I prefer face to face. The seller has a problem your job is to find out what the problem is and solve it.
@Frank Wong Thank you for the sound advice. I did a little research on what to ask and everyone says pretty much the same thing, ask about the house and then shut up and listen. I will reach out today and see how "trashed" the inside is so I can figure out my options.
Are your plans to self manage as a rental or are you attempting a flip?
@Jorge Roman I'm attempting to flip
Gotcha, I agree with Frank about gathering the bid,
I would actually make sure you get 2 or 3 bids, don't be afraid to pay the same fee a few times, you may see thousands of dollars in difference from one GC to the next. You'll find some inspections much more effective than others
@Jorge Roman thanks I will be sure to do that.
How did the walkthrough go? If you decide to make an offer, I'd be happy to help with negotiations. Sounds like this might be a complicated contract, based upon the need for repairs ...
@Pamela Sandberg thanks for the reply. The home own had to postpone our meeting. I have rescheduled with him for this Saturday. I’ll let everyone know how it goes.
@Jimmy Hodges : good luck! Let me know if I can help.
Latest update... met with the home owner yesterday to make an offer on the property. We had a very good discussion but in the end it was left with "let me think about it". Good news is he didn't say no and I learned that I really need to work on my negotiation and delivery skills. I am still very confident that he wants to sell but my price was not what he was expecting. Admittedly, I was a little freaked out at the possibility of him saying yes because the next step is gets into the scary part. Not having a decision gives me a chance to work on the funding some more which I need to do.
Still loving this crazy ride and will post again when I get his Yes or No.