How to handle my motivated seller
I got my FIRST call today from my marketing campaign, which I launched earlier this week. (Small victory!)
The seller has a very unique property and situation. I'll share it all with you guys below. Let me know what you would do!
She has a 3/1 house at 1100 square feet sitting on 1 acre of land. All around it, there are new neighborhoods with upper middle class houses. ($120k avg.) This is on the outskirts of Lubbock. Still connected to the city, but this property is like its own country getaway.
The house is "Zestimated" to be worth 80K. The county appraiser said it is worth 30K! (WHAT?!)
She owns it free and clear on the mortgage side. But there are $700 of back taxes, which are probably unknown to her.
I go to the house today, and there are weeds 9 FEET TALL. I can't even go up the driveway! It's not in the best shape. Roof needs repair and much more. Still haven't seen inside.
She says her possessions are still inside and she wants them moved eventually. She's living in a new city now.
Oh yeah, and she wants her horses moved too. Did I mention she has another 5 acres across the street with horse stables and a guest house?!?! She didn't either until the end! It has the same type of weeds. Poor ponies.
So I told you she owns it outright. Here's the kicker- I asked how much she thinks it's worth.... SHE HAS NO CLUE! Honestly, I don't either. SO hard to value, but it's a fantastic location with a lot of potential. It could be worth $80,000 ARV or $200,000 ARV.
Here's what I'm thinking:
•I pay for her moving expenses (horses&house junk)
•I coordinate a place for her horses to stay in her current city and coordinate moving teams for her.
•I pay for closing.
•I pay back taxes.
•She owner finances the note. Payments don't begin for 3-6 months to allow for all the logistics that need to happen.
•I pay her $0 down because of the other expenses I'll be handling up front.
•I offer somewhere around $20,000 total for both properties.
•I use hard $ or an equity partner for repairs.
Exit strategies:
•Clear weeds from 6 acres, then wholesale deal to investor. (2 months)
•Fully rehab properties. Sell to tenant. (5 months) either separately or together
•Fully rehab properties. Sell to investor below market rent. (4 months) either seperately or together
•Fully rehab properties. Rent out (seperately or together) (5 months)
•Wholesale deal immediately. (1 month)
INPUT!