My partner and I just submitted an offer on our first rehab. It took us a minute to finally make that first move and it wasn't until we dismissed FEAR that we were able to do so.
Here are the numbers...
The home is located in one of the better neighborhoods in our city. It's a foreclosure and has been on the market for ~179 days, with an ARV of $105,000.
Multiple offers have been submitted on this property. The asking price is $59,995 and our offer is for $55,000. Needs about $15,000 in repairs that we could turn in 60 days or less.
We are working with a well known realtor in the area who is also a rehabber and owns multiple rentals. He and his wife said they'll teach us anything we need to know. I even introduced them to the Bigger Pockets community and they're thinking about joining!
Happy INVESTING Day everyone!
Congrats on taking the first step. Are you guys planning on keeping the home or plan to flip it?
@Curt Davis Our first option is to flip the property. We have a couple buyers already lined up. If there financing falls through, we have a few folks that we know will rent from us. Our Realtor told us that he knows we will have renters knocking at our door as soon as we begin the rehab as well.
Nice, thats awesome good job taking that first step. Everything you want is on the other side of FEAR
@David Brown You're absolutely right!!! One of the scariest things we've done so far... We'll keep you guys posted.
@David Trotten, congratulations on your first deal! As a fellow newbie, I am jealous. You did the right thing in taking that first step. It sounds like you've gotten off on the right step!
Great job on making the move. It is always good and should help ease your fears having a good realtor on your side!!
@Keith Mildren Thanks for cheers! I bet your first deal is closer than you think. Just don't be like us and take forever!
Casey Cuppy Our realtor is a rock star. I would say that finding a great realtor that also is an investor to be at the top of the list of things to do after writing out the business plan. If they see you're serious, they won't mind working with you. The same goes for our lender. Showed him the plan and he said, "You find a house, I'll get you the money!"
I agree with finding a Realtor/Agent that is also an investor. As an agent/investor, I provide the services to my clients, that they were not getting with other Realtors who only deal with first time home buyers/residential.
@Brian Ortins I know your business is booming having the experience on both sides of the table. What market are you located in?
I am located in MA. My experience has allowed me to rapidly expand all of my businesses, as they all compliment each other.
Could you tell us a bit about how you found this property and financed the deal?
@James Previti We actually found the property through an "unconventional" bird dog. One of the ladies in our church was looking at the house, but wasn't able to get it so she told us about it. We went and looked at it and decided to make an offer. My partner lives in the neighborhood where the property is located and it was listed on our local MLS. We presented our business plan to a local mortgage banker that our realtor works with for his own deals, and voila! He gave us a pre-qual letter to go along with our offer on the property.
Congrats, that is awesome. My partner and I just started out and in less than thirty days we will be taking that big leap also.
@Sharlise Mcduffie I'm rooting for ya!!! Let us know how it goes...
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