Vacant property next door to me!

3 Replies

I need advice. My neighbor lost his home unfortunately due to back taxes. Other than the taxes, he has no mortgage. The Home needs a lot of work. I spoke with the Town real estate lawyer and agent, and they want me to call them back to discuss if I want to buy the property from them. If I purchase this home, how do I know if I’m purchasing a lemon? What are your do’s and don’ts when purchasing a major fix up? Also, what are the best strategies that I can buy the home and get it fixed with other people’s money? Thank you so much in advance.

What is a lemon?

Use the bigger pockets calculator to make sure that you're buying a deal that makes sense.

Get a contractor that you can trust to give you a rehab bid for the property. 

You can create a package for your project and reach out to some investors to see if they want to fund your project. 

@Antoine Martel   Could you provide some specifics on how you structure packages that you propose to investors?  I'm considering this option to fund a few purchases locally.  I have a finance background, but I've never structured a RE deal for investors.  How do you set up the terms?  Thanks!

Originally posted by @Jesse Smith :

@Antoine Martel  Could you provide some specifics on how you structure packages that you propose to investors?  I'm considering this option to fund a few purchases locally.  I have a finance background, but I've never structured a RE deal for investors.  How do you set up the terms?  Thanks!

Equity investors put up 80-90% of the total capital and get 50% of the total profit.