All Forum Posts by: Jaron Smith

@Daniel DeSurra

I'm glad you got out. CoC was very low for the amount of capital needed to get this deal done. Also cash flow was low as well. Keep looking and you'll find one. Also great control to realize it didn't meet your standards.

Jaron

Hello everyone,

I’m excited to say the sellers of a house we made an offer on have accepted the offer!

Asking price: $119,000

Offer and accepted: $100,000

ARV: $155,000-165,000

Anyways, now comes the real diving into this property to make sure everything pans out. I’ve received the inspection report, which shows the boiler needs some work (baseboard heat) and the electric panel needs replaced (federal pacific box). I will take my friend who flips houses through this weekend to help me estimate rehab costs and to double check my ideas for renovations. We will live at this residence and continue to buy rental properties to add to our portfolio.

I just wanted to hop on here to share with the newbies that if you want to buy a house but are stuck just focus on the next step! Focus on saving for a down payment, or getting pre approved, or analyzing a deal. Focus on doing at least one thing a day that will bring you closer to that goal, no matter how uncomfortable until you get there. I’m nowhere close to where I want to be but by focusing on the now and doing at least one thing a day I’m closer than I was yesterday.

Thanks everyone and have a great day!

Jaron

Hey everyone,

I recently had a situation happen that I’m unsure of how and where it went wrong. If you could shed some light on it I’d appreciate it.

I made an offer of 90k on a house listed for 119k. Sellers countered with 115k, I then countered with 100k as my firm offer. The sellers initially countered with 105k, which I didn’t respond to the counter for like 6 hours. My realtor then texted me the following message.

“From listing agent. Will let you know what I hear tomorrow...

I will let lawyer know tomorrow mornin, I will get back with you then, I called the beneficiaries,  both sons, they agreed to 100000 as is , if inspector sees evidence of insects seller will pay for inspection.   lawyer will call probate judge to see if he will sign off of in the mornin”

The following day we didn’t hear from them until my realtor called me and told me they accepted another offer.. now it’s contingent.

Where did it go wrong? Was there nothing binding them to my offer after they accepted it?

Thanks

@Wayne Brooks @Russell Brazil

Thank you gentleman! I will keep my current realtor, and do my due diligence moving forward regarding ARV's. Thank you for sharing your wisdom as always and have a great day!!

Jaron

@Wayne Brooks

So you’re saying no matter who I put an offer through with this agent would still get the commission? But I’m happy he corrected it but I would’ve liked the correct answer the first time, let alone before I submit an offer.

@Winston Covington

Never signed an agreement with this agent. I was just baffled by the the spread on the ARV's given to me. In my profession we do it once and do it right, not just spew up a guess just to have an answer.

I’ll ask this question here since my post earlier gathered no response.

I made an offer of 90k on a house with an ARV of 160k.

The offer was countered at 115k

When I originally found this property my realtor told me the ARV would be mid 200k

Prior to making the offer he told me the ARV would be 170-180k (which was more believable for me)

I made the offer of 90k based on the 170k-180k ARV.

Finally after making the offer and receiving the counter my agent told me he "spoke with another realtor in the office and the ARV would be 145k-155k."

I was baffled as I made the initial offer based on an ARV 30k higher than what he just told me.

Question of my plan of action below -

The listing realtor is the Executrix of the property, should I contact her and make an offer with her directly so she gets my commission if accepted?

I believe that would give me an advantage while still getting the property for a potentially lower price.

Hoping to get some input here, thank you!

Jaron

Hello everyone,

I am interested in a property where the Listing Agent is the Executrix of the Estate. I submitted an offer through an agent that showed me the property, of which after I submitted the offer, my agent told me he thought the ARV was actually 30k less than what he originally told me before I made the offer. This rubbed me the wrong way.

However I made a lowball offer and was countered by the Executrix, my question is, can I contact the listing agent (Executrix) and make an offer through her directly ? She would obviously get my commission then from the purchase.

Thanks,

Jaron

No longer being held back by my own mind!

Made an offer yesterday, here are the details

ARV: 170,000

Asking Price: 119,000

Offer Price 90,000

Estimated Rehab: 30,000

This is for a primary residence, I will be doing a 5% down conventional rehab loan where the lender will give me the funds to complete the rehab and roll it into my mortgage payment and allow me to do the work!

Knowing it’s a long shot the offer is accepted, it still feels empowering to make an offer again after a few years. I should hear back today about the status of my offer!

Have a great day everyone!

Hey everyone,

I’m planning on submitting an offer on a 1300sqft 3br 1 bath house with a full basement and 1 car attatched garage. Also with .40 acre back yard. This house is in a town where the median purchase price is $232,000, 2 miles away from highway and a great schooling system.

The specifics of the purchase would be

Type of loan: Conventional 5% down

Listing Price: $119,900

ARV: $175,000

Offer Price: $86,250

Rehab total: $40,000

All in: $126,250

Equity gained: $48,750

I will be using a construction loan from a local credit union where I can act as my own contractor. I will rehab the property, refinance it and pull the equity out to repay the construction loan.

We are living in one of my 2br units now and will be adding to our family in a few months so we are planning on “BRRRRing” this property but living In it ourselves.

Let me know what you guys think! Sound plan? Any words of wisdom? Looking forward to it