My business partner and I are very excited because we are finally about to get our first house under contract, but still have a few questions and need some HELP!!!! Would anyone be able to provide us with some sample contracts and also some exit clauses? We are going to get the house under contract for 80K. On zillow the house is estimated at 138k, and on realquest 163k. The house is 4 bedrooms and 2 bathrooms. The air conditioner needs to be replaced. No other repairs are needed. The owner does owe 6K on a loan that she took out against the house. Other than that the house is in Excellent condition. It's in a REALLY good area, and very good school district. We need help with coming up with a price to market the house for. Any advice is appreciated. :D :D
Originally posted by Shayla James:
Any advice is appreciated. :D :D
One small bit of advice: Don't quote Zillow or some other website as your basis for price. What are the comps?
It sounds like you found a motivated seller but it sounds like you need to do more research before you decide it's a deal. What if you're off on your ARV and you've dramatically missed many repairs?
I'd suggest you find a better way to figure you're ARV before you put the house under contract. The sources that you quoted are not reliable. Find a way to get real compa pulled.. Look for a local realtor to help you.
I'd also imagine you'll need to estimate more repairs than just an AC. Most flippers are going to at least add paint, new floor and possibly add new fixtures, and update the bathrooms and kitchen. That is unless the house is really new and has modern decor.
Have you walked the house? Does it look and feel brand new?
If it's in a good rental area you may be able to find a landlord that will agree with those repairs. But you'll need to figure out the market rent and compare that to your wholesaling price to make sure it cashflows enough for your end buyer.
What is the rent for a similar house in the area?
Who is going to be your end buyer?
I would also suggest talking to local investors and an attorney regarding your contract.
Good luck and congrats on finding a motivated seller!
True! I would not rely just on zillow by itself. Try calling a local real estate office or go to their website and see what a similar house goes in the neighborhood.
If you need contracts you should be using the standards state contacts, the "as is" purchase and sale agreement. Contact an investor friendly title company and if you plan on closing with them they will be more than happy to email you the contracts. They will even give you a quote on the closing cost once you finalized a sale price.
What was the conclusion?
Seller signed the contract? Wholesaled the house?