Urgent, please help!

6 Replies

I have a motivated seller currently meeting with a rehabber. He inherited the property when his parents passed, come to find out the house was copper mined, basement COMPLETELY flooded(up to the floor joist - which are apparently ruined) and from what he's saying the house needs to be torn down.

There are about $50k in back taxes owed and he has until the 15th to pay $4,400 cash to the county. I haven't been able to get a hold of my REA, and the comps I'm finding online are over a mile away. I'm finding myself stuck, but feel like this could be an amazing opportunity since the property sits on 3/4 acre in the heart of the city, which leads me to believe it can be subdivided.

He also said he would be VERY happy to get $70-75k for the property, so should I offer him around $15k and offer to take care of taxes/closing costs? 

Am I in over my head on this one?!

Don't' make an arbitrary offer.

What will it cost to tear down, What will it cost to rebuild the house, What can you sell it for afterwards. How long has it been on market? Once you have the costs you can work backwards from there.

 You need a lot more information to make a good decision, or post more information you already have so people can properly help you.

@Corey Keller . In addition for the previous suggestions, make sure you have a clear plan for what you want to transform this place and make a profit from it. It seems to me that you might have a 10,000 ft view, but have not yet dig into the details on what it will cost you to get where you want to go and what your exit strategy will be. How much time do you have to make a decision? How much competition do you currently have on this project? Are you the only bidder? An impulsive decision could be a great deal, but it could also set you back ... so, proceed with reason and caution, not with heart (unless you can afford to throw away that money).

Thank you, everyone! I knew this was one of those 'move fast' type of deals and I was right! By the time I was on the phone with my lender, my wife was back on the phone with him and he had already signed a contract for $63k - which we were going to offer $60k so in the end I guess it was a nice little test run and great knowing my numbers were close! 

Again, I appreciate everyone's feedback!

@Corey Keller If inherited, make sure you're talking to the person in charge. Also, check to see if there are any other heirs to the property (i.e. siblings, family members, etc.). Good luck! 

Originally posted by @Corey Keller :

Thank you, everyone! I knew this was one of those 'move fast' type of deals and I was right! By the time I was on the phone with my lender, my wife was back on the phone with him and he had already signed a contract for $63k - which we were going to offer $60k so in the end I guess it was a nice little test run and great knowing my numbers were close! 

Again, I appreciate everyone's feedback!

Just because someone else bought it doesn't' mean you missed out. They may have made an awful decision that you didn't have to.

If you don't have all the information you need to make a decision, speed is your worst enemy. Once you KNOW somehitng is a good deal, that's when you move like lightning.

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