Just drove by a home with a for sale by owner sign and I’m wanting to do my first deal. What do you recommend as far as acquiring the property? Which method? It’s an early 1900-1950 home that will surely need some repairs and updates. Thanks!
I mean there are hundreds of variables here. Most FSBOs right now are wildly overpriced (and some are even getting that price). What kind of property is it? Single, multi? What shape is it in overall? What's the price versus market price. FSBO is simple if you are buyer - call the number, set an appointment. Find out where they are going when they sell. If they don't have an answer they aren't properly motivated to sell to an investor yet. Build rapport, see if you can solve the reason they are selling if they have one.
@Account Closed are you looking to buy and hold or wholesale the property? To put it simply, ask how much the owner is looking to get and more importantly, how quickly they need to sell. If he/she wants well over market value, then indicate the fact that some repairs will need to be made on the property. If they need a quick sale, then corroborate to the seller that you can close quick, but in doing so, there would need to be a price reduction. At the end of the day, it all comes down to how motivated the seller is. Building rapport and follow up is key with FSBOs. I don't know which market you're in, but with current conditions, the seller may get what he/she wants. Best of luck!
Thank you guys! @Michael Dumler I am in forsyth county north ATL. I’m in the process of getting the info from the owner to decide which strategy would be best.
@Account Closed Nice! Once you gather more information from the seller; square footage, bed/bath count, overall condition, etc. I'd be more then happy to pull comparables from the mls and send them your way to determine if seller's asking price is realistic. This will allow you to provide factual sale statistics to the seller and may give you favorable negotiation terms. Then again, FSBOs can often be greedy and may not even budge.
@Account Closed Cash. If the sale price is below market and it needs a decent amount of rehab, it's ripe for a BRRRR
@Michael Dumler it’s 1716 sq ft, 3 bedrooms, 1bath, renovated in 1980, will gather more info when I call the seller
@Michael Dumler got some more info! Very nice older lady but she said she’s in no hurry to sell. 3 bed 2 bath, smoke house and barn in the back, tin roof, new furnace and air system, asking 425,000.
Any help is appreciated! Most podcasts I listen to on here are of people buying single family homes for $100,000 or less so $425000 is kinda crazy!
Also @Michael Dumler it’s on 4 acres
@Account Closed Interesting. Feel free to shoot me a pm to further discuss. I get the sense that even though the property is outdated she very well coud have kept it in great condition. I also could be totally wrong. A lot of variables at play still but overall you're correct. If she wants 425k then this deal is a bust as a buy and hold in Cumming. I would have to look at and dissect comparables to determine if it would make for a solid flip opportunity, but most liklely the margins are too tight.