Hi so... I'm very very new to wholesaling. I came across a vacant home that was advertised as a 4 bedroom, 3bath, sauna room, steam shower, barn, inground pool, pump house, screen house, 2 brick fireplaces, 2 sheds with over 5000 sq ft of acreage. Now when I contacted the owner of property (found out was dead and now the daughter is "executor" of the home) she told me that the home actually has 6 beds, 4 baths (2 beds in basement along with the sauna, steam shower, furnace, water heater, 4 sump pumps and living room area down there). I had a real estate agent run comps for what homes are selling for around there and the average was 97k but the home in itself in a all repaired status the tax assessors site has it valued at 280k but I think if it was fixed it would sell for no more than 120k.
Now, I went to the place to get a closer look at it as it sits farther back from the street than the other homes with its own driveway going all the way back there. I looked into the home and can see that the lady just up and left from there leaving a whole lot of stuff behind. I scheduled a time to look into the home and when the time came we went to see it... kitchen had caught a fire and is in complete ruins, there is mold on the ceilings around the place, fire in kitchen went thru the roof and they placed a cardboard over it but from the inside you can still see outside, critters have come thru and torn up the place, the floorboards are all crumpled and lifted, garage is full of trash, the land hasn't been touched for any type of landscaping or lawn maintenace, inground pool is full of sea-like-weed but the biggest issue that I seen was when as soon as you go thru the backdoor into the home are stairs that lead to the basement. From the main lvl to the basement is 8 stairs to get into the basement... the basement is flooded to the 6th stair going up and a tire is floating on the water.
So, pretty much I had a contractor come by and he loves the look of the place but when he went in and seen what I seen... he said with the mold, the replacing of the back end of the roof, the no knowledge time of the water sitting in the basement due to the sump pumps and wall damage plus the kitchen needing to be gutted out plus all sorts of stuff... maybe 70,000 in repairs but that's not including whats going on in the basement. I told the lady thereafter that she with the back taxes being 6,700, closing costs, title search and inspection including her profit of at the most maybe 3,000 that the total sell price for the home would be 15k and she frowned at that telling me that she would call me after she goes thru her options. The back taxes are from 2 years of not paying and coming up soon the state will take the property and put it up for a tax sale. I want some advice on the home. I'm including some pictures for everyone to get a idea of what I'm dealing with. I have plenty more than this btw.
Also the home was not on the market and I had found it "Cruzin4Cash". The advertisement of the home came from a listing back in 2011.
1st you need to be clear on what the propety is worth when fixed upand n good condition.
the home in itself in a all repaired status the tax assessors site has it valued at 280k
Ignore tax assessor values. The are useless when trying to determine true market value. You need to determine the true after repair value.
The basement water may be as simple as getting an existing sump pump working again, and it will clear it and keep it clear.
Explain that the property is in poor condition and deteriorating, you can only offer X. If she isn't interested Be respectful and helpful with her options. If you do that when she is ready she may come back to you.
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/
Run run run...LOL
Seriously though, i see your from Merrillville and if that property is in that city your looking at a project that is going too drian your pockets..I invest in Merillville and Gary and i see these properties all the tiime. Whats happening to you is you see the potiental and whats growing in you is the emotional attraction. your best bet it to go look at this house stand outside for a few hours have a moment of silence and never look back again. If this house were here in LA, id say go for it, but be careful. Merillvillle resell market dosent exsist right now. Not too many houses are being sold at full market vaule. Mostly investors buying up and renting out...
However i dont want to diiscourage you because Merillville is a great place to invest and its fairly cheap...and also i love to connect with you, its rare i see anyone on here from Merrillville Area...
Thanks you guys for the input as it is very helpful... deep inside I figured that this wouldn't be a deal but I seen so much potential in the home because it so beautiful at one time but once I went inside... I knew the repairs would really take away from the home especially it being in Merrillville. I will continue Cruzin4Cash and finding vacants not on the market.
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