Below are notes my VA sent me on a lead. Not sure what to do. Any advice?
Asking Price: $70,000Least Price: Let me see what you can offer but I can work with the price for you.
Repairs: No need to. Everything is being repaired when he bought it. It has dining and living room. Fully furnished and all furnitures go with the house. Fully carpeted. New Air conditioning. Brand new toilets. All brand new doors and are up to date.
Vacant: It's been vacant for 3 months now and they're just renting a whole apartment.
Reason for Selling: Hospital Issues with wife. Movin and they already have a house targetted. They just need the money for down payment.
Mortgage: YES Amount Owed: $22,000
If we can agree on a price and we accept all responsibility for future repairs, would you consider a lease purchase?
Answer: NO. Just want to sell it fast. Need cash ASAP.
So if you're saying if you don't get full price and all cash you won't sell?
Answer: YES but as I've said I can work on the price with you.
This person is really motivated to sell. He doesn't want to put the property on the market and list it with investor or realtor. If this is what we're doing, he doesn't want it. He just want to sell the property as soon as possible. He doesn't have email address as he is never good with computers. No fax number too. If you want to make an offer, you can call him back tomorrow 10a.m. and he will be willing to listen to what you can offer.
@Matt Ellis know what the property is worth and make a offer, then partner with a BP member or get a HML. Alll houses need something, but if you can get it cheap and sell it for 30% more with no work that's still a deal. Plus you may have an auction to sell off the stuff inside and maybe even try to auction the house, worse case you get rid of furniture make some cash and meet other cash investors. Just my thoughts. The Key is knowing the market, to know what the true value of the house is
Thanks @Jeremy Tillotson for the help!
I am supposed to call them today. Hopefully it goes well.
Based on my readings elsewhere on BP, most people with VA Loan availability are hoping to find property not just because it is a good price and they will like living there, but property that ALSO has the ability to also generate income AT THE SAME TIME ie. A Duplex, Triplex or preferably even a Quadplex! (That's REALLY what BP is about:- the Bigger Pockets you will need for all the cash you will have generated from the VERY-wise decisions you made, rather than just run-of-the-mill-wise decisions). Cheers...
its not a VA Loan @Brent Coombs . It was my VA ( Virtual Assistant) that passed this on to me.
@Matt Ellis not sure that "VA" being short for "Virtual Assistant" will catch on here or elsewhere (seeing as VA does already have an established meaning). Nonetheless, your due diligence on what THIS property is worth to YOU should also take into account any FOREGONE opportunity that might be waiting for you in the shape of a BETTER return on investment. So, get to your research (virtual or otherwise). Cheers...
OK so I spoke to the seller.He lives out of town and wants to get rid of it. The house is fully updated. He said in the last 2 years he put about 20k remodeling it. Had to move due to family medical reasons. I am still waiting in Comps but looking at the tax appraisal it has it at $60k. I know we should not go off tax appraisal but generally in the area, the Tax appraisal has almost always come is lower than what it comps
He want about 50k but he will not do owner financing ot L/O. He just wants to be cashed out. What can I do here?
$50k certainly sounds better than your original 'VA' telling you $70k! Makes you wonder just how low you can go? So, if your proper research tells you that this the real deal, can you come up with funding? (If not, why are you even bothering with a "virtual assistant")? [Sorry, I just reckon that people shouldn't be even looking for real estate if they don't know where the money to pay for it is coming from]. Cheers...
@Matt Ellis .find a way to do the deal if the numbers work. Do you plan to hold as a rental?
@Rolanda Eldridge Not sure yet. I am going to get the Comps today and see what I can do from there.
I was thinking to L/O but he doesn't want to do that.
@Matt Ellis ..If you can rent it for $700-$750 it can be a solid investment..
More to this. The seller is owner financing and it looks like commercial bldg that was converted to a house. It literally is the only house in a row of small shops. The location is not that desirable.
Anyone ever dealt with this...
@Matt Ellis can you convert this to a commercial office, or is there acreage with it?
@Matt Ellis Something I don't understand. You said "He just wants to be cashed out", but then you said "The seller is owner financing". Isn't that a contradiction? And if it IS Seller Financing, why would he be concerned if you sub-lease it out afterwards (because if you OR your lease-holder subsequently renegue down the track, he gets the property back anyway)? Cheers...
@Jeremy Tillotson There isnt any acreage with it. I do know a guy that buys commercials buildings so I might try and assign it to him if I can get it under contract. It would be very hard to keep it as a residential I think...
Whats the value? The biggest question and the most important information you need to know.
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