First investment

12 Replies

Good evening from Bahrain,

I recently found a property in Birmingham AL thats' lowest estimated value is 32000 and the asking price is 6500. Its a fixer upper and I am not able to physically able to go look at it. Was thinking of asking my dad to go or hiring an inspector. I am tempted just to offer 4000 and see what I can get it for regardless. Any words of advice would be nice. 

Thanks,

Josh Harvey

typically when the price is lower then 10k your simply talking about the value of the land because the house is either nearly beyond repair and/or in a very unwanted area or condemned by the city etc.., its not a dollar amount issue, it costs the seller allot more to hold the property/risk associated then the value. you could probably offer a box of chickens and close on the house (seller would probably get the better deal in that situation). lots of houses in my area and many others sell for less then $10k. havent seen one that I would touch  with a 10' stick even if they were free, similar to Detroit, a free house isnt free. in most cases it would be cheaper to buy a 30k house then it would be to buy a 1k house if that makes any sense. 

No, I understand what you're saying. If it makes any difference I found his add on linkedin for 7500 and I researched to find he had it listed for 8500 one month before. Is that a trend of anything you have seen?

Hey @Joshua Harvey  

There is a huge market for these kinds of houses in Birmingham.  You just have to be careful and know what you are doing or you can loose big.  I suggest you come to our monthly meet up group and meet some people who can help you one way or other in the local community. 

Medium bamainvest logo fa portraitJ Benoit, Bama Invest | [email protected] | 205‑982‑5647 | http://www.alabamaturnkeyproperties.com/

@J Benoit  I am currently deployed and cannot go to meetings.

@Michael Noto  I will , I have to know what I am dealing with.

Thank you for the responses everyone.

Josh

@J Benoit   I would love to check out your monthly meetings. Can you post the details?

Thanks in advance, 

GiGi

Hi GiGi,

We meet every 3rd Tuesday at 6:00.  Locations always change.  Sign up here:

http://www.meetup.com/Birmingham-Real-Estate-Investors/events/219183349/

Medium bamainvest logo fa portraitJ Benoit, Bama Invest | [email protected] | 205‑982‑5647 | http://www.alabamaturnkeyproperties.com/

@Joshua Harvey  

Thanks for your service!  I suggest you wait until you return if you want to play in these lower markets.  It's always best to see what you are buying.  Its a great idea to study the market while you are deployed so when you return you can start off running!

Medium bamainvest logo fa portraitJ Benoit, Bama Invest | [email protected] | 205‑982‑5647 | http://www.alabamaturnkeyproperties.com/

The first thing you should do is gather as much general information about the property as you can:
  1. Is it listed with a Realtor? if so you can get a lot of information from them.
  2. Is it vacant, boarded, rented or owner occupied? this can help determine the livable condition.
  3. Does it have a mortgage? Not likely, but if so you can purchase it "Subject To".
  4. Are there any liens or judgments on the property? If so, the seller may need more than they're disclosing.
  5. Get some pictures because a picture is worth a thousand words.

Once you've gathered enough of this information you can make a better determination whether or not this investment warrants moving forward.

Definitely have someone visit the property before you submit any offer. Where I invest, a lady was offering a house for $1. Needless to say it was in a horrible neighborhood and had a fire in it. In cases like this, I would rather put my money in a mutual fund then throw it away on a crappy property. I would keep looking. Good luck.

I was able to look at some tax assessment  docs on the county website which let me know a little more about the property. It could still be a good deal but it looks a little worse than what this guy was saying. I didnt find any liens or anything like that but the communication between him and I is almost non existent since our first couple emails. I will keep looking for other deals.

@J Benoit  I really want to get started before I get back but of course I will keep studying and looking.

@Raul Martinez  It's not listed on any website for sale. A friend of the owner is who I was talking to about it but I think it's a dead lead.

@Christian Bors  Thank you for the advice.

I have to agree. If there's no communication, no need to move forward.

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