I need advice from seasoned Vets here please.

11 Replies

So I am very close to signing my first contract on my first investment property.  Yes, I know until the deal is done it's not done.  Understood!  My GC called today and another woman has a home that her mother passed down to her when she passed and she can't afford the upkeep any longer and needs to sell.  That is good news but the only problem is this is my first home and I do not think it is a good idea to do two at once my first time.  Does anyone have any suggestions on how to hold her off and still buy the property?  I feel it could be a really good deal as well and don't want to lose it to someone else, but I need to stick to one at a time.  I don't really see a solution here and she seems to want to sell soon.

If it is a good deal, wholesale it. Better than getting in over your head, and better than not making anything at all.

@Jamie Wooley  I agree with @Aaron McGinnis  . If it's truly a good deal, you should be able to wholesale it no problem and then you won't be so stressed. It might also depend on what type of investment property your first deal is and the amount you've invested for it...B&H, fix n flip, etc. 

Jamie,  If you are interested in wholesaling the deal, I may be able to help you.  If the numbers make since I can purchase the property with your assistance and walk you through the assignment.  This way you can make money from an assignment fee and profit from this transaction without having to take on the project yourself.  Feel free to contact me directly.  

Jamie,

Instead of wholesaling it, I believe you can make more money by taking on a partner. An extra 3-4 months of holding cost, if necessary, is nothing in the scheme of things. If it's truly a good deal, you shouldn't have any issue finding a partner.  

@Jon Klaus  might be interested since in your neck of the woods, and if the margin is there to make it worth his while.  

Best of luck. 

When in doubt, get it under contact, preferably with a longer option period to assess all options. Garland is a desirable area for many investors, so you should be able to generate some interest if you decide to wholesale (provided there is room in the deal).

 You can be upfront with the seller and tell her them you may pass the deal onto a partner (i.e. assign).

@Jamie Wooley  you are wise to hesitate.  That is your instinct telling you something, go with it.  Others have given you a few options.  One that hasn't been mentioned is to pass and stay focused on the deal you already have under contract.  Most gurus tell you to do many deals as fast as you can, but none of them tell you how to fix things if/when you get in over your head.  There will always be good deals.

Another option, depending on what your end plan is, might be to offer to rent/manage the property with an option to purchase at a later date.  This is assuming that it makes sense as a rental and that it needs very little work to be habitable.  For example, you say that you will guarantee rent to the owner/seller in the amount of x every month, regardless of whether it is occupied.  You then rent it to a tenant for y, and use the difference to cover your expenses.  The danger of this arrangement is that if the tenant tears it up, you may have to fix it.  This option ties the property up without costing you a lot, if any, out of pocket in the meantime.  Just make sure you have a solid purchase contract in place so they don't sell it out from under you.

I'm not saying my way is the best way, you have been given other ideas to consider as well.  Just wanted to throw one or two more out there for you to consider.  Trust you instinct in every deal you make.

@Jamie Wooley  

  @Minh Le  

Minh has good advice.. and or if you want some good Karma help the lady maximize their return by setting up listing appointments with really good agents who can get this person top dollar. Then get really good testimonals from them that you can use in the future in your business.

Originally posted by @Jay Hinrichs :

@Jamie Wooley  

  @Minh Le 

Minh has good advice.. and or if you want some good Karma help the lady maximize their return by setting up listing appointments with really good agents who can get this person top dollar. Then get really good testimonals from them that you can use in the future in your business.

And better advice from Jay. That's the beautiful of getting and having your own real estate license. You can help sellers to get the most amount of money from their property. 

I have a couple of stories to share about having my own RE license. A gentleman called me from my mailer. He was 1 week from foreclosure. He didn't want the property due to a nasty divorce. He was ready to deed it over to anyone. I was able to stall the foreclosure, sold the property, and he walked away with over $95k net. Did I say he was driving a beater car with mechanical issues. 

A widow was 3 months from foreclosure. She received over 30 soliciting letters. Our letter was the only one stated that she still had equity in her house. We sold her house and she walked away with over $84k net. With that said, consider getting your RE license. One sale can pay for years of your MLS membership and RE license dues.

Good luck. 

Thank you all so very much for your advice. It gives me many options to think about. I do actually have my RE license and got it about 4 months ago just to do REI. I know that is one way to work this deal I just know there is much more to be made on the rehab side of this deal and wanted to go that route. I believe possibly renting it out for a few months while I fix my first property might be a very viable option, assuming my attorney gets a very good contract in place. Again, thanks so much for the help!

Get control of house and delay closing or wholesale to another investor and make 5k to help with your first deal

I'll just throw my two cents in here with some creative deal making. You could offer to get the property under contract but set the closing date for sometime in the future when you know you'll be done with your 1st deal. In the mean time, you tell her you'll split the  "upkeep" (mortgage?) where she pays X and you pay Y, until the closing date and you either offer to pay her back at closing, or make the offer for an amount that would essentially pay her back.

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