Update: Need suggestions, advice and more...

6 Replies

So the homeowner I wrote about this morning told me the whole story. Fiance needs to dump property; she's in over her head. Home would need all of the equity it would have if it was in good shape to rebuild and fix it in its current state for sale later on.

Mortgage (owed) = $66k

Comp = $130k to $140k

My general contractor , an honest man, asked the fiance if he wanted us to pay off the mortgage with him assuming that was all we were offering his fiance). The guy then shook his head as if my contractor is an idiot. This guy is actually expecting us to cut him a check for this property! Mind-boggling.

My contractor then went to the city to see how feasible a demolition would be. That's how useless the property is.

I know people get wonky when it comes to financial hardship and maybe losing a home, but why do they always seem to take cash buyers for suckers?

How would seasoned investors and buyers here handle this matter?

You said in your previous thread that the house needed $15k worth of work and now all of the sudden it's a tear down? Which is it?

If it's worth $130k after $15k of work you could pay about $80k for it and be safe.

You handle this by making an offer that makes you money. If they don't like the offer you leave them a business card and kindly say "that's my highest offer, call me if you change your mind". Move on to the next deal.

One good take away lesson: the owner told you $15k in repairs and it turned out to be a complete demo. Never take their word for it, a sellers perception of necessary repairs and cost is usually way off.

Originally posted by @Patrick L. :
You said in your previous thread that the house needed $15k worth of work and now all of the sudden it's a tear down? Which is it?

If it's worth $130k after $15k of work you could pay about $80k for it and be safe.

I said in the previous thread that I peaked in the windows and that what I saw was relatively minor in terms of repairs. Now, though, after going with my contractor, this is a complete demolition if it wasn't in a historical neighborhood.

Originally posted by @Brian L. :
You handle this by making an offer that makes you money. If they don't like the offer you leave them a business card and kindly say "that's my highest offer, call me if you change your mind". Move on to the next deal.
One good take away lesson: the owner told you $15k in repairs and it turned out to be a complete demo. Never take their word for it, a sellers perception of necessary repairs and cost is usually way off.

My straight talking money guy gave them an offer of paying the mortgage and $5k.

Tired of neurotic homeowners who think that just because the property is in a good neighborhood that they automatically have value no matter what the condition it is in.

They're looking for suckers and hard money people aren't suckers.

Just have to move on. Especially if in a historical district, that can lead to a very expensive remodel!

Originally posted by @Zach Morrison :
Just have to move on. Especially if in a historical district, that can lead to a very expensive remodel!

I do need to move on, but is so frustrating knowing that I spent so much of my time on this idiot who thinks his peice of crap is worth something due to the neighborhood it's in and he's sticking to his guns by not taking a $5k check and getting rid of this property which he is at least one month behind.

The fool is going to lose his home trying to find a sucker that'll be dumb enough to give him money.

And he's also restricting access to his fiance who owns the property.

And did I mention that his fiancé has already lost two properties of hers recently and the idiot fiance of hers is playing hardball?

YOU HAVE NO LEVERAGE!!! YOU'RE ABOUT TO LOSE ANOTHER OF YOUR FIANCE'S PROPERTIES!

I would so love it if my money guy told them to stick it today and plans on picking this property up from the hard money lender once it's seized.

//RANT OVER