All Forum Posts by: Ariel Echevarria

so I sent a yellow letter to the owner of the house that still appeared to be vacant as of yesterday. Hopefully I hear something back. The second I do I'll let yall know. I'm hoping to get the property for dirt cheap. If I get a good deal I'll post the terms on here to get feedback and possibly a buyer interested. The houses in the area sold for 69k on average. I bought mine for 114k and I'm a block up the road. Of course mine was updated and had

@Dev Horn can you shoot that spread sheet to me as well. i found whay looks to be a vacant house up the road. i have yet to speak to the owner but want to be prepared. Can i send you a link to the property and get your initial thoughts? i know houses in the area sell for a lot more than what the original owners paid. i live on the same street actually. they paid 30k back in 2005 so im assuming they owe quite a bit less than that.

Agreed. Lets get back on subject. Lol. I just want to say I've appreciated all the feedback from everyone. I'm learning a lot and hope to learn more. Speaking of finding buyers there is a sherriff auction next month that I plan on going to. I want to see who the buyers are at these things and pass out some business cards and get an idea of what they look for in a property. I'm really excited about this one house that looks vacant. Like I said it has mail piling up on the front porch and I haven't seen lights on at night in months. The other cool thing is that it's literally four houses up the road from me so I really have a good idea of what houses sell for on my street.

on the subject of appraisals I know with my personal home loan the bank would not allow financing on a house priced over the appraised value . If my appraisal said the house was worth 119k I couldn't finance 130k.

Well I did more comps. The area has very slow property sales. Last one was mid 2013. The house sold for 80k. Everything else in a ten year span sold for under 50k. The comparable houses in the area sold between 29k and 45k. I basically informed the seller that based on the comps it wouldn't make sense to go forward with the deal. I offered a ball park of 25-34k. Which would have still allowed me and a buyer enough room to make a couple grand but he declined. He said the person he is under contract with for the deed offered 45k to buy the house back but he declined. He's set on the idea that because he invested so much in the rehab that he would get more come spring. I broke it down to him about my comp results and even gave home the link to the information. I didn't hear anything back for a couple hours but he came back eventually saying how he appreciated me taking a look and how he put so much toward new siding and some toward a backyard kitchen area and home theater. He was still trying to sell me on it. I think come spring he will be in for a shock.

Thanks for the info. I've read a lot about comps but I think I need more practice with it. This is why I jumped into this so I could learn as I go and pull valuable info from the community. With this particular property I think my first mistake was not making sure the person selling was the same person on the deed. I believe if I would have done that I wouldn't have a guy wanting to sell and make enough money to pay the remainder of the loan and make money on top of that. That doesnt leave much room for myself or the end buyer to make a profit. I think what I'll do next is do more comps and then see if the seller would be willing to at least go a few grand off of what is owed on the property. I know how expensive moving across the country is so I'd like to be able to at least help him out in that aspect. Otherwise I could be spinning my wheels. I told him if I thought he would be better off going through a realtor then to do that otherwise we are going to offer what is fair. Any thoughts from the group would be great.

I agree that the spread would be very thin. But what about someone looking for a rental investment property that doesnt want to deal with rehabbing? I think the marketing would have to be spot on. I can talk to the property investment company my friend works for to see if they would be interested in it at 65-70k.

so after deeper research i found the actual contract between the deed holder and the guy trying to sell to me. He bought the house for 25000 as an owner finance deal. that is why the deed has been held so long under contract. until the loan is paid he doesnt get the deed. He says he put 30k in rehabbing the house. he said he could go down to sixty grand but id have to get it lower for a buyer to be able to make profit and me to make at least 2k.