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.
•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)
@Jonathan Towell Since you asked me to keep you up to date on my marketing efforts!
I'm sure you'd find this anyways with your tendency for being on the ball with anything BP & Lubbock related haha.
@Austin Hughes First and foremost congrats! Huge victory. The terms of helping her out should build you some very solid rapport with her. How hard would it be deal with the horses? Is she going to have 'high standards ' on where they stay? The fact that you say you have no flu what the value is scares me... There is always a value.. Figure it out and good luck!
@Austin Hughes I would more accurately understand what the ARV is on the subject property. You say the surrounding props are $120k average, but are they comparable? Those values could have much less merit if the subject prop is very unique. So, before structuring an offer, understand the props ARV.
Also, assisting her with the sell, move, and transition will strengthen your offer greatly. Plus, it's nice to help people out! But, as @Nick Britton insinuated, are you prepared to deal with horses?
Good luck, man!
Sounds like a great plan. Give me a call when you get a minute. I think I know someone who could help with the horses. Also, I've got some ideas for getting an appraisal done quick and cheap.
@Jonathan Towell Thanks for the connections! I'll give you a call in the next few days when the craziness subsides.
offer her all of the above and she what she likes the best. Then you decide if you want to wholesale it and find a buyer or just keep it.
@Gordon Cuffe Yes, we had a lengthy conversation in which I found out what was important to her.
I tried, and although she has no clue of the value, she was way above my price, and didn't want to negotiate. I didn't push. She just needed a little time. Instead we had a good conversation. I am confident she would go with me over another guy.
That's good advice. She owns it outright.
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