Got my first 2 houses under contract!
Hey Guys!
I'm super excited! I got my first two properties under contract last month! It was exciting and scary all at the same time! I wasn't able to find an end buyer for both the properties but thats ok because I was looking to get my feet wet with process! Of course my goal is to make money, but I know with time and experience the money will come. Any who, my direct mail campaign is working! I am not able to send out 1,000 letters yet because of limited funds, but I have a small targeted list that has got me 4 good conversations so far. Two of the four I was able to get under contract, the other two are in the negotiation stage (fingers crossed). I have a question about a pre-foreclosure. My motivated seller is looking to sell her house before the bank comes in and takes it. She owes roughly $170K and $3,500 in back taxes. The house is worth about $248K and the comps in the area are around $200K. The house has been condemned and flooded and sewer wiring issues . Did I ask enough questions? Am I able to get the house under contract for the asking price of the seller without the bank being involved? Is there a way for me to check the foreclosure price online?
Thanks!
Most Popular Reply
Hey Dominique! Awesome job getting some deals under contract! Do you mind talking the numbers on those?
The deal you detailed is one I would recommend leaving alone. If the comps are 200k, then the house will most likely only be worth 200k. If she owes 174k on a condemened house with flood and electrical damage, then it sounds like a complete renovation and gut to me, which requires tons of time, money, permits and risk tolerance. The only option I see is a short sale, but that may be biting off more than you can chew considering you already have two deals under contract.
I'd recommend slowing down a bit and focusing on how you plan on unloading or handling the houses you do have under contract. You've done amazing in such a short amount of time! Keep up the good work!