What would make this a good deal?

Question

Hey guys! So my aunt is a new investor and I am learning by just doing everything with her! Last night we looked at this house and it was from 1953 and NOTHING has ever been replaced except the roof, air conditioner, and water heater. This house is 3100 s/ft 3 beds and 2 and a quarter baths. We did some math and the repairs come out to be around $90k could be more once we get the pier and beam foundation looked at... after running comps the house arv would be between $280-310k the lady has her friend trying to negotiate and sell it (she is a new relator and has no idea what she is talking about) and was trying to get my aunt say yes last night to buying it for $200k! If we go straight to the lady and offer $130k and get a contact.. would that be a good investment without screwing the homeowner?

Account Closed · Answer

Is this listed on the mls?  If so just put on your offer and if accepted at $130 with $90k in repairs it would make a great flip if your arv is correct .

Patricia Steiner · Answer

You're role is not to worry about whether it's a fair/good deal for the seller; what matters is that it works for you.  Since the seller is a realtor, I strongly recommend that you bring on a realtor who works with investors to write and present your offer.  Even though the seller is a new/inexperienced realtor, her broker/firm will be advising her - and they will know.  Buyers don't pay commissions so build bench strength and get representation.

Please keep us posted.  Fingers crossed!

Breanna Steele · Answer

@Steven Picker not yet on the mls, so I think I’ll definitely try to talk to the owner and put a contract on it! Thanks!

Breanna Steele · Answer

@Patricia Steiner that’s awesome advice! Thank you!

Breanna Steele · Answer

@Scott Mac thanks for the heads up! I tried to keep this super vague!!! :)

Scott Mac · Answer

Hi Breanna,

Just a pointer since you are still learning.

When you post details on a potential deal, be careful to not post so much info about it that people can figure out it's address.

Because if it's a good deal, tons of people read these posts and some will be deal sharks and try to swoop in and buy it from under you and your Aunt, meaning all of your hard work and dreams will be gone.

Not that this one tells anyone that, but an MLS listed property might be pretty easy to find with those details.

Good Luck!

What would make this a good deal?

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