Real Estate Investor · Lake Jackson, TX · Member since 2016 · 149 posts · 49 votes
I need a brown paper bag.
I mailed 9 letters yesterday. They were a mix of probates and distressed homeowners. I spent my lunch break handwriting the letters and dropping them off.
I get a phone call today from one. Spent 35 mins on phone listening to her remembering her parents and venting about the other children that aren't helping clear the house.
She's in town this weekend going through the property.
She invited me out to look at the property tomorrow morning.
I'm scared senseless, but I did use my psychology degree today!
I may throw up ☹
Houston, TX · Member since 2015 · 111 posts · 155 votes
10y
@Jessica A. Smiththis is tooo funny , i was the same way on my first deal, i wore a sweater even though it was hot lol because i was sweating underarm so bad lol
2 words Deodorant and Contract
As for the repairs 99% of investors are going to come up with therir own numbers so you dont need to be exact
If you know other houses are selling within 2 miles or less for that 100K+ then your looking good
Just remember you make money when you negotiate not when you sell to thr investor
Wholesaler · Richardson, TX · Member since 2016 · 18 posts · 1 vote
10y
3 phone calls from 9 letters is still an amazing response rate. You'll have to see what that levels off to as you scale up. Good luck and remain patient!
Real Estate Investor · Lake Jackson, TX · Member since 2016 · 149 posts · 49 votes
10y
Hey all!
I decided to move this thread to a blog. If you're interested please follow along this journey with me! Please because you KNOW I'm going to need some help!!
Investor · The Colony, TX · Member since 2014 · 192 posts · 66 votes
10y
Don't forget that if the house is worthless and you're just buying the lot, it's not worth what the county says it is. There's some figuring involved regarding what it would cost to build a house to the square footage that would achieve the market average for that area.
But at a minimum you need to figure in the cost of demolition, which I'm guessing would be around $7k to $10k, just looking at the pictures and over-estimating a bit. That demo cost should come off the price of the lot.
Even if you replaced the house with a small thousand sqft at only about $60/ft, that's $60,000. Add in the $10k+ for demo, plans, permits, etc... Now your at an easy $70k, plus the lot and whatever other costs you may have incurred, you're at or over the $100k target. And obviously, no investor is going to all that trouble just to break even or lose money...
Even if it's not a tear down I think she's probably asking too much... Something to think about.