Advice needed ASAP! House JUST listed and I want it!

9 Replies

Sooooo, I am looking at a house that is listed at 36k, surrounding houses 100k+, last sold for 130k+ about 10 yeas ago and clearly needs lots of work! Still able to live in it. I do NOT have the money to just buy it in cash and then flip right away. Should I just buy it with a mortgage and then live in it for a couple of years while I fix it and then sell it? My credit is also not the bet so that might hold me back. Should I try to get a private money loan and then flip it. I've got guys who will help me fix it up. Professionals, not just buddies that I have lol. This property has only been listed on the site I found it on for 5 days, I called the agent about it yesterday and tried again today. I hope to hear back on Monday. I have never purchased a home, I am nervous and don't want to ruin this.

Feel free to post and reply or send me a direct message. Help!!!!! 😳

Rebecca Bryant

@Rebecca Bryant , since the seller usually pays for all agent commissions, I would find your own buyers agent, not the listing agent.

If you don't know a buyers agent, ask your contacts for a recommendation or do an Internet search for the brokers in your area who are highly recommended and frankly one who would be willing to work for the 2.5-3% commission on $36k.

Then have your agent setup an appointment to see the house.

Make sure you get an estimate on the rehab and that the house can be financed (condition and the fact that it is listed for below $50k).

If the house is in a hot area, chances are you may get into a bidding far or get outbid by a cash offer who can close sooner than a financed offer.

Get pre-qualified for financing ASAP if you plan to finance your home.

Good luck!

Rebecca, if you have cash lined up to buy, this will put you in a strong position, particularly if the house needs work. Get an agent right away, and be ready to show your proof of funds. To compete against any other bids, shorten time window for inspection and if it's cash, you may consider waiving financing contingency. You won't want to do that for inspection, so just shorten it. To sweeten the deal, you may want to pay half closing costs too.

Good luck and member if this one doesn't work out, they'll always be another house!

Sounds like you may not be ready for the opportunity. I am not familiar with your market, but in our market good deals listed in MLS last about 2 hours. If this is as good of a deal as you are thinking it is probably under contract. I had to look at A LOT of houses before I was able to get my first one under contract. While the money wasn't the issue, we would want to look at the house, have the contractors over, run all the numbers and if everything worked out make an offer. Once we started making offers we learned the house was well under contract. To be able to act quickly you need to have the finances in place before the deal shows up so you can get it under contract and then work out the details in the 5-7 option period, but like Penny said, there will be other houses. Hopefully this will aid you in getting the money set up so the next one you will be ready to buy.

@Katie Neason for all those reasons I never subscribed to the idea that you can do real estate with no money and that if you have good deals the money will find you.

problem is unless your finding totally off market deals .. you never get a deal without money up front.

and in Texas you have those options periods for 100 whopping bucks that let you do the due diligence whilst your under contract.. you only risk 100 dollars.. pretty funny really.. but that's the custom there.. glad you got orginaized and its working now.

If this is a livable house it probably needs less then 30k worth of work.  With the numbers you are using that would still make this a very good deal.

The fact it has been on the market for over 5 days and still available makes me think you may not have correct numbers.

I would verify your numbers.  Especially on what the property is really worth.

I just want to offer one point of caution. I don't want to squash your enthusiasm or hope at all. I do notice your post is written with lots of excitement and urgency...

Make sure your purchase is based on the math and logic more-so than "I want it, I want it, I'm so excited!" Make sure the comps are solid and run the numbers using financing from the different scenarios you've mentioned-- conventional, private money, etc. What are the costs associated with those options? If your friend funds the deal, what are they expecting to gain/profit share/percentage? Can you pay the carrying costs--the taxes, insurance, utilities each month?

Do you know the actual rehab costs your professional re-modelers will charge you? Have you determined the scope of work and asked for their rehab estimates? Only after a thorough analysis of the numbers can you determine if this is a good buy. Also decide on your strategy--Will this be quick fix & flip or a live-in flip over the years? Don't let excitement overrule the numbers :) Put all the costs on paper and really plan it out for your first one...

Thanks everyone! The site that I was on was a little behind and the house sold. It had 18 offers!! Great deal, I learned some from the short time and I look forward to learning and growing more in preparation for the next opportunity. I appreciate all of the input, I am taking all of it in to apply it to the future!!