All Forum Posts by: John Clare

I know you said bids start at $600, but I'll bid $500 anyway. Let me know and good luck

@Ivan Figueiredo I've done several flips in Decatur and first off your rehab budget is too high. Get another opinion from other contractors in reference to the cost of the rehab. With a 165K rehab budget you could do a modern contemporary smarthouse and get north of 450K if finished right. It's way too much money for a regular rehab even with the addition of the second floor. Secondly, take a look at the comps again. In Belvedere Park for example a house @ 1100-1300 sq ft you can get an ARV between 275-300K. Houses @ 1400- 1800 sq ft can get a ARV between 300-340K. Point is, instead of spending 165K adding a second floor and such, why not add sq footage on the first floor (if possible) and increase your finishing cost. Your rehab cost should drop significantly to 75-80K and you'll make more money on your exit, take less time to complete, and with those number you would create a secondary exit option of refinancing at 70% LTV if the market changes drastically by the time you complete your rehab. Or if you're set on going upstairs then just add the master suite upstairs (500-600sq ft) and finish the downstairs. The cost should still be significantly less. Just my 2 cents. Good luck

Thanks @Josh Caldwell. I thought there was more to it. 

As the subject suggests, I'd like to know what contracts are necessary for an owner financed fix/flip deal? Let me outline the situation.

I'm buying a fixer upper from a distressed seller in the state of North Carolina. She's agreed to sell me the property which she owns free and clear through owner financing. I plan to buy the property from her for 37K and put down 7K towards the purchase. I would pay her $400/mth interest only for 6 months while I rehab the house. I really only need 4 months tops to fix and flip the property, but figured 6 months gives me a 2 month contingency. Once I sell the property then I would pay the seller the 30K balance I owe. 

I've done many flips over the years, but I usually pay cash, use private money, or buy subject to . This is my first owner financed deal so I'm not clear what contracts I need and what should be recorded locally. Please help, because the seller is waiting for me to draw up the contracts. Any help or sample contracts would be appreciated.

Thanks everyone for the replies. I'm going to go to the courthouse next week to do some research on the properties. By the way the wife said she found some paperwork for another property, but it's in a corporate name

Let me start off by saying I am new to Probate investing, but not new to Real Estate investing. 

Here's the situation

I found a woman through a friend who's husband past away 3 years ago without a will and he has 2 properties that he left is his name only. 1 was his primary residence where he and his wife lived and the other is a 3 story 8 unit building (Currently 50% occupied).  This is in the state of New Jersey btw.

She was living in the primary residence until about a year ago then she decided to buy another property in her own name with the proceeds from her husbands life insurance policy. At that point she stopped paying the taxes and the mortgage. The house is currently in the pre forclosure stage for the mortgage. She in her own words wants to "untangle" herself from any properties that the husband has and start over from scratch. I told her that the I was interested in both of the properties and she wants me to take them, but I'm not sure what steps I should take next. Both properties have a great amount of equity in them. She would sign them over to me now, but I told her that there's a few things that need to be done first. 

By the way, I should mention that the husband did not have a will, and she is the executor for the properties. 

My question is how can I take ownership of the properties? Any advice will be greatly appreciated.