Should I care or leave that up to the end buyer?
AL · Member since 2010 · 522 posts · 31 votes
Should I care or leave that up to the end buyer?
Most Popular Reply
Real Estate Agent · Greenville, SC · Member since 2021 · 210 posts · 142 votes
4yI would work on getting the rest of the houses under contract and seeing if the end buyer wants those as well. Somebody will eventually do it if you don't.
13 Replies
- Real Estate Agent · Greenville, SC · Member since 2021 · 210 posts · 142 votes4y
I would work on getting the rest of the houses under contract and seeing if the end buyer wants those as well. Somebody will eventually do it if you don't.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes4y
Quote from @Antonio Bodley:
Should I care about buying homes in awful condition and in poor locations as long as there is an end buyer that buys junk homes in poor areas? My thing is this. If someone buys and rehab a junker house in great condition surrounded by junk homes on that same street, who would want to live in a nice home in a poor area? Wouldn't that just bring the property value way down on the newly renovated house?
are you referring to gentrification? If you buy homes in a low income area and do not rehab them, you will have a hard time making money just by reselling them as who is your end buyer? You would need to owner finance as borrowers most likely cannot get financing based on property condition and other factors. Plus those areas have higher crime so more of a chance home may be vandalized and incur more damage
7e investments53 Reviews - 4yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
That has been my model for years. There is only one condition....the area has to be in the process of, moving towards 'gentrification'. At least a few other investors or forward looking homeowners have to be fixing up as well...
If you can hit this double-whammy, you are golden.
If you're wholesaling, you shouldn't care about condition or location if you have buyers who are looking for this product in this location.
You're not the one who is closing on the deal and who has to deal with these problems, your buyer is.
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes4y
You are looking at this wrong.
It ia all about the numbers. ANY house has a number.
The "number" is what connects everything and everyone to the transaction.
If the house is in a crappy neighborhood, putting in marble bathrooms may not make sense... the NUMBERS won't allow it. If it is in a crappy neigborhood, section-8 may make sense, so you rehab the house based on the numbers, either rent, or flip profits... its about the numbers.
There will ALWAYS be buyers (the right biuers) as long as the numbers make sense... as long as the deal makes sense.
And yes you DO need to care about condition and loication, wholesaling or not... but again.. all that is factored into the numbers. No matter how crappy something is, a job is... most people have a "number". There is no way I am going to clean toilets in Disneyworld as a job... but I may change my mind if they pay me $1M/toilet... right?
Everything has a number, and everything is died up in that number. The number reflects all the issues, characteristics of the deal including crappiness, location condition, worj, risk, effort, vacancy rate desirability... everything.
Simplify this, not complicate this. Leave emotions behind and ONLY look at the numbers.
- AL · Member since 2010 · 522 posts · 31 votes4yIn a way, it is like gentrification. I don't know anything about that area seeing how I do not live in that area. It looks like a crime infested area just by looking at it.
Quote from @Chris Seveney:
Quote from @Antonio Bodley:
Should I care about buying homes in awful condition and in poor locations as long as there is an end buyer that buys junk homes in poor areas? My thing is this. If someone buys and rehab a junker house in great condition surrounded by junk homes on that same street, who would want to live in a nice home in a poor area? Wouldn't that just bring the property value way down on the newly renovated house?
are you referring to gentrification? If you buy homes in a low income area and do not rehab them, you will have a hard time making money just by reselling them as who is your end buyer? You would need to owner finance as borrowers most likely cannot get financing based on property condition and other factors. Plus those areas have higher crime so more of a chance home may be vandalized and incur more damage
- AL · Member since 2010 · 522 posts · 31 votes4yI just got done looking at comps for that house with most recent sold homes. Out of 14 comps, two comps were the closest in similarity that I could find. This house may not be worth it.
Quote from @Jerryll Noorden:
You are looking at this wrong.
It ia all about the numbers. ANY house has a number.
The "number" is what connects everything and everyone to the transaction.
If the house is in a crappy neighborhood, putting in marble bathrooms may not make sense... the NUMBERS won't allow it. If it is in a crappy neigborhood, section-8 may make sense, so you rehab the house based on the numbers, either rent, or flip profits... its about the numbers.
There will ALWAYS be buyers (the right biuers) as long as the numbers make sense... as long as the deal makes sense.
And yes you DO need to care about condition and loication, wholesaling or not... but again.. all that is factored into the numbers. No matter how crappy something is, a job is... most people have a "number". There is no way I am going to clean toilets in Disneyworld as a job... but I may change my mind if they pay me $1M/toilet... right?
Everything has a number, and everything is died up in that number. The number reflects all the issues, characteristics of the deal including crappiness, location condition, worj, risk, effort, vacancy rate desirability... everything.
Simplify this, not complicate this. Leave emotions behind and ONLY look at the numbers.
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes4y
Quote from @Antonio Bodley:
I just got done looking at comps for that house with most recent sold homes. Out of 14 comps, two comps were the closest in similarity that I could find. This house may not be worth it.Quote from @Jerryll Noorden:
You are looking at this wrong.
It ia all about the numbers. ANY house has a number.
The "number" is what connects everything and everyone to the transaction.
If the house is in a crappy neighborhood, putting in marble bathrooms may not make sense... the NUMBERS won't allow it. If it is in a crappy neigborhood, section-8 may make sense, so you rehab the house based on the numbers, either rent, or flip profits... its about the numbers.
There will ALWAYS be buyers (the right biuers) as long as the numbers make sense... as long as the deal makes sense.
And yes you DO need to care about condition and loication, wholesaling or not... but again.. all that is factored into the numbers. No matter how crappy something is, a job is... most people have a "number". There is no way I am going to clean toilets in Disneyworld as a job... but I may change my mind if they pay me $1M/toilet... right?
Everything has a number, and everything is died up in that number. The number reflects all the issues, characteristics of the deal including crappiness, location condition, worj, risk, effort, vacancy rate desirability... everything.
Simplify this, not complicate this. Leave emotions behind and ONLY look at the numbers.
While most investors give up here... the select few will thrive here using creative strategies to get the deal to work.
BUT, it is really difficult to make a deal work.... and even more difficult to say "I need to walk away". And you are able to do that, so good on you my man!
Never be desperate to make a deal.
- AL · Member since 2010 · 522 posts · 31 votes4yYep that is true. I almost got caught up in the desperation because a big paycheck does sound tempting, but I know there are plenty more out there that will be worth my while. I just feel kinda bad when I tell the guy I can't make a deal work to buy his house.
Quote from @Jerryll Noorden:
Quote from @Antonio Bodley:
I just got done looking at comps for that house with most recent sold homes. Out of 14 comps, two comps were the closest in similarity that I could find. This house may not be worth it.Quote from @Jerryll Noorden:
You are looking at this wrong.
It ia all about the numbers. ANY house has a number.
The "number" is what connects everything and everyone to the transaction.
If the house is in a crappy neighborhood, putting in marble bathrooms may not make sense... the NUMBERS won't allow it. If it is in a crappy neigborhood, section-8 may make sense, so you rehab the house based on the numbers, either rent, or flip profits... its about the numbers.
There will ALWAYS be buyers (the right biuers) as long as the numbers make sense... as long as the deal makes sense.
And yes you DO need to care about condition and loication, wholesaling or not... but again.. all that is factored into the numbers. No matter how crappy something is, a job is... most people have a "number". There is no way I am going to clean toilets in Disneyworld as a job... but I may change my mind if they pay me $1M/toilet... right?
Everything has a number, and everything is died up in that number. The number reflects all the issues, characteristics of the deal including crappiness, location condition, worj, risk, effort, vacancy rate desirability... everything.
Simplify this, not complicate this. Leave emotions behind and ONLY look at the numbers.
While most investors give up here... the select few will thrive here using creative strategies to get the deal to work.
BUT, it is really difficult to make a deal work.... and even more difficult to say "I need to walk away". And you are able to do that, so good on you my man!
Never be desperate to make a deal.
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes4y
Quote from @Antonio Bodley:
Yep that is true. I almost got caught up in the desperation because a big paycheck does sound tempting, but I know there are plenty more out there that will be worth my while. I just feel kinda bad when I tell the guy I can't make a deal work to buy his house.Quote from @Jerryll Noorden:
Quote from @Antonio Bodley:
I just got done looking at comps for that house with most recent sold homes. Out of 14 comps, two comps were the closest in similarity that I could find. This house may not be worth it.Quote from @Jerryll Noorden:
You are looking at this wrong.
It ia all about the numbers. ANY house has a number.
The "number" is what connects everything and everyone to the transaction.
If the house is in a crappy neighborhood, putting in marble bathrooms may not make sense... the NUMBERS won't allow it. If it is in a crappy neigborhood, section-8 may make sense, so you rehab the house based on the numbers, either rent, or flip profits... its about the numbers.
There will ALWAYS be buyers (the right biuers) as long as the numbers make sense... as long as the deal makes sense.
And yes you DO need to care about condition and loication, wholesaling or not... but again.. all that is factored into the numbers. No matter how crappy something is, a job is... most people have a "number". There is no way I am going to clean toilets in Disneyworld as a job... but I may change my mind if they pay me $1M/toilet... right?
Everything has a number, and everything is died up in that number. The number reflects all the issues, characteristics of the deal including crappiness, location condition, worj, risk, effort, vacancy rate desirability... everything.
Simplify this, not complicate this. Leave emotions behind and ONLY look at the numbers.
While most investors give up here... the select few will thrive here using creative strategies to get the deal to work.
BUT, it is really difficult to make a deal work.... and even more difficult to say "I need to walk away". And you are able to do that, so good on you my man!
Never be desperate to make a deal.
No no, don't feel bad. That is how it goes my dude. I would still make them an offer though.... just make an offer based on the numbers it works.
Check this out...
10 dollars bro!
That was how much we were willing to pay for it. If they didn't think it was fair, they could have gone elsewhere right? They picked us.
We are honest transparent straight shooters and.... absolutely not desperate. That is attractive to people... go figure.
Either walk away if you really don't want to deal with it... or make them an offer that makes it worth your while and go from there...
Either way.. there is NOTHING wrong with walking away.
- AL · Member since 2010 · 522 posts · 31 votes4yI wish I could get a contract price for 10 bucks. The only times I have seen homes purchased for dirt cheap was through quit claim deeds. The seller has no clue what he wants for the house, and I do not know what I want to offer. I normally would make offers based on the comps and repairs. I cannot get inside access to the house to get a full evaluation to see what the repairs are to get my resell price. I could make a blind offer and throw out any number just to see what he will take, but I still need to know what the cash buyers will take for it in order for me to make a profit.
Quote from @Jerryll Noorden:
Quote from @Antonio Bodley:
Yep that is true. I almost got caught up in the desperation because a big paycheck does sound tempting, but I know there are plenty more out there that will be worth my while. I just feel kinda bad when I tell the guy I can't make a deal work to buy his house.Quote from @Jerryll Noorden:
Quote from @Antonio Bodley:
I just got done looking at comps for that house with most recent sold homes. Out of 14 comps, two comps were the closest in similarity that I could find. This house may not be worth it.Quote from @Jerryll Noorden:
You are looking at this wrong.
It ia all about the numbers. ANY house has a number.
The "number" is what connects everything and everyone to the transaction.
If the house is in a crappy neighborhood, putting in marble bathrooms may not make sense... the NUMBERS won't allow it. If it is in a crappy neigborhood, section-8 may make sense, so you rehab the house based on the numbers, either rent, or flip profits... its about the numbers.
There will ALWAYS be buyers (the right biuers) as long as the numbers make sense... as long as the deal makes sense.
And yes you DO need to care about condition and loication, wholesaling or not... but again.. all that is factored into the numbers. No matter how crappy something is, a job is... most people have a "number". There is no way I am going to clean toilets in Disneyworld as a job... but I may change my mind if they pay me $1M/toilet... right?
Everything has a number, and everything is died up in that number. The number reflects all the issues, characteristics of the deal including crappiness, location condition, worj, risk, effort, vacancy rate desirability... everything.
Simplify this, not complicate this. Leave emotions behind and ONLY look at the numbers.
While most investors give up here... the select few will thrive here using creative strategies to get the deal to work.
BUT, it is really difficult to make a deal work.... and even more difficult to say "I need to walk away". And you are able to do that, so good on you my man!
Never be desperate to make a deal.
No no, don't feel bad. That is how it goes my dude. I would still make them an offer though.... just make an offer based on the numbers it works.
Check this out...
10 dollars bro!
That was how much we were willing to pay for it. If they didn't think it was fair, they could have gone elsewhere right? They picked us.
We are honest transparent straight shooters and.... absolutely not desperate. That is attractive to people... go figure.
Either walk away if you really don't want to deal with it... or make them an offer that makes it worth your while and go from there...
Either way.. there is NOTHING wrong with walking away.
- Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes4y
Quote from @Antonio Bodley:
Should I care about buying homes in awful condition and in poor locations as long as there is an end buyer that buys junk homes in poor areas? My thing is this. If someone buys and rehab a junker house in great condition surrounded by junk homes on that same street, who would want to live in a nice home in a poor area? Wouldn't that just bring the property value way down on the newly renovated house?
You should care about all details of all homes you plan to offer on as the details are how you come up with an offer price. I don't buy in crappy neighborhoods because the exit is more difficult and there are many other negative factors to them. But that's me, others specialize and/or are successful in those types of markets. To each his own as it goes. As Jerryll pointed out, the details generate the numbers and the offer amount would have to be at a point that takes into consideration the comps, the rehab amount, the buyer's pool, the current local market conditions, etc.
- AL · Member since 2010 · 522 posts · 31 votes4yI am glad I actually went to see the property in person rather than just trusting outdated photos from Google Maps because I almost did not want to go there once I saw the area it was located in. That neighborhood looked horrible. I was looking at cash buyers who have recently bought properties within 1 mile from that home. I do not see any consistency with sales price information each buyer paid for the homes in close distance and with similar features as the subject property. That may be a deal breaker for me.
Quote from @Will Barnard:
Quote from @Antonio Bodley:
Should I care about buying homes in awful condition and in poor locations as long as there is an end buyer that buys junk homes in poor areas? My thing is this. If someone buys and rehab a junker house in great condition surrounded by junk homes on that same street, who would want to live in a nice home in a poor area? Wouldn't that just bring the property value way down on the newly renovated house?
You should care about all details of all homes you plan to offer on as the details are how you come up with an offer price. I don't buy in crappy neighborhoods because the exit is more difficult and there are many other negative factors to them. But that's me, others specialize and/or are successful in those types of markets. To each his own as it goes. As Jerryll pointed out, the details generate the numbers and the offer amount would have to be at a point that takes into consideration the comps, the rehab amount, the buyer's pool, the current local market conditions, etc.
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