So I found a seller of a distressed property not on the MLS. Now what?

3 Replies

I was driving for dollars last week and I found a property that had a for sale sign. I figured I'd check since they said they'll finance via land contract. I called the number and met with the guy and he walked me through the house. Quite a bit of work has to be done. In fact, the property is so cheap that the repair costs is more than what he's selling the property for. 

Being a contractor, I met with him and did a walkthrough to get an estimate of the rehab cost and not really much else. He did however had 2 more properties that he showed me as well. 2 SFRs and 1 2-flat. He did say if I buy all 3 he even give me a discount. 

Now, not having bought a house before, what exactly do I do next? 

Some context 

My end goal is cash flow

I don't qualify for conventional lending due to a myriad of reasons

I have some cash, but having put it in the rental analysis calculator, I don't even come close to what's needed for the project. 

here is a link on one of the properties

https://www.dropbox.com/s/i5l2qt361352asy/A2%20Investment%200001.pdf?dl=0

You might try owner financing but if the homes are not in livable rent-able shape then you come out of pocket to fix the homes up. 

You can also try to flip them to another investor and make a spread.

Hey @Ashton Astillero   in addition to what @Curt Davis  said, if you think you're getting the 3 properties at a really good deal and could maybe flip one and keep the other 2 for cash flow, you should consider going with a private lender. Yes, they're more expensive but if the numbers are right they can make the deal happen. 

Find a way to get the deals done!  Consider doing one at a time.  You have  the expertise to complete rehab which will save $$$..if the owner is open to owner financing at a great price go for it!!!

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