All Forum Posts by: Karin Crompton

Welcome, @Judd Fertman . It's not often you see someone from Canterbury on here! I'm an Eastern CT investor as well, and I know of another investor who is wrapping up a rehab in Canterbury. Houses sell in that little town!

You've come to the right place for info and networking. Best of luck!

Welcome, @Clifford Ross . I believe you understood it correctly - if you find a great deal, you'll have no problem finding a buyer. You probably wouldn't have to go farther than Bigger Pockets, in fact. It would seriously be that easy if you found a legitimately great deal.

The catch? It takes a lot of work to find a deal. I've lost track of how many would-be wholesalers have either talked a big game about the deals they were going to find, or presented a project where the numbers or the situation (i.e. terrible layout or neighborhood) made no sense.

Best of luck!

Looks like a decent deal. Is there free delivery, and what about hook-up? And what about the cost of the extras, like extra cords and ice/water lines, etc etc. Those, plus tax, would bump you up over $2500, maybe approaching $2600.

I agree w/the above replies. In CT, the assessed value is 70% of the alleged Fair Market Value of a property. Note that I said "alleged." Basically, an assessment is nothing more than what a municipality decides a property is worth in order to tax it based upon that value.

Additionally, although cities and towns are mandated to perform assessments regularly (in CT they're supposed to update assessments every 5 years), that assessment can still be quite old and outdated. Think about the difference in value between 2006 and 2011, for example.

We'll use the assessed value sometimes when running comps. In addition to our regular criteria comparing size and style of house, bed/bath, acreage, age, etc, we might toss assessed value in there just to see what comparably assessed properties are selling for.

Another way I've used the assessment is to calculate a ratio of assessed value to sales price. Is it 1.3, 1.5, etc ... and this can help me in my comps as well, not to mention that it gives me an added tool I can give to an appraiser. It's a good way to see what's going on in a particular town.

And @Hattie Dizmond it can be a little wacky in CT! I've seen properties sell for double the assessed value. Or below assessed value. It's kind of all over the place.

It appears to be a buy-and-hold property, unless the owners came way down on what they'd accept. And what's going to happen w/the liens? You might have to tack 20k onto your "rehab" numbers if the lien falls to you to pay off, bringing your MAO that much lower (from 43k to 23k). If you haven't already, I'd also take a trip to town hall to check for yourself what liens are on record and what permits, if any, were pulled. I'm wondering why the owner allegedly had an inspector to look at the decks, for one thing. The Building Dept/Zoning Official, etc, could also fill you in on whether they have any outstanding issues w/the property (any cease-and-desists, blight complaints, whatever).

Good luck!

Great news!!! Thanks for the update, @Donna Martinez .

Yes, @Terry Hershberger  he was definitely using it to pitch an alleged better deal. @James Wise correct, Z profit is higher than X profit.

And I'm definitely over it. This one was just a pitch that attempted to demonstrate a better deal. I do appreciate the insight and comments into the overall question, however, as the matter of a wholesale profit is something I've run across from time to time and haven't been sure how, or whether, to address.

Thanks, all! In fairness, he didn't make a big deal of it, so I do think it was just part of his overall pitch to try to demonstrate that we could make even more by going for his proposal. I guess it rubbed me the wrong way at first b/c I assumed the conversation was going to head in another direction (it did not). And @Michael Olesky you are SO right about not reading too much into emails, as tone gets lost or distorted way too often.

@Jean Bolger that's a very good question - why did that comment get to me, even briefly - and one I'll have to think on some more. We did have a bit of a run-in a couple of months ago with a completely clueless person who threw around the word "greedy" and commented about the money that could be made "for just pushing paper around." Long story. But this guy isn't that guy.

Thanks again for the input!

Hey all,

Sometimes the Irish and Italian temper in me clouds my judgment, so I'm throwing this out to the smart, reasonable people on BP...

During an inquiry into one of the properties we are wholesaling, a rehabber included this sentence in his email pitch to me: "According to public records on June 20, 2014 you purchased this property for (purchase price) and now are wholesaling it to make a (his math) profit."

He then went on to describe a fairly detailed and somewhat creative way to purchase the property, but I had trouble reading it through my ticked-off eyes.

My question is: when I reply to this guy, do I address that statement at all? He is suggesting that we're making a rather huge profit, which we are not - and he should understand this sort of thing if he's a real rehabber. I'm annoyed, but in all honesty, I don't know his intent with that comment - whether it was a jab, a way to slide in to the conversation that he knows (or thinks he knows) what we're into the property for ... or maybe he intended nothing at all other than to set up his pitch, in which he claims we'll make more profit by going along with his proposal. (btw, we can't go with his proposal, which entails us holding most of the note, b/c we need to free up funds for 2 other rehabs. So maybe that's all I respond with.)

Your thoughts? How do you handle it when someone makes an erroneous assumption regarding your profit?

Thanks, @Steve Babiak  - I'm sure I'm missing something here. Normally there's nothing left to dispute for a property that's considered foreclosed-upon in CT. However, I don't have experience buying on the proverbial courthouse steps.