All Forum Posts by: Neil Schindel

@Will Barnard

@Will Barnard 

This is what I am expecting to make if I were to sell it after the rehab. I am looking at this property as a BRRR strategy where I will be able to pull out around $20,000 which will be almost all of my initial investment. I went to school for real estate finance and this is a sheet I created to help me analyze deals fairly quickly

@John Teachout

That is not a bad idea. I have talked to him about his sons and he has said they don’t really come around or talk to him unless they need help with something. He said they haven’t even been back to the house in several years. He always has to go to them. But they are close enough to come by and be another party to help their dad figure things out. I will suggest that next time I talk to him.

@David Braut

You're right that was my mistake. His ARV is $140 but is FMV would be around 70-80k. I give that range because there is no telling what problems lie under the mass amounts of stuff in the home. I actually couldn't even get into the 3 downstairs bedrooms because of all of the stuff and could only barely walk through common areas. He also did not under any circumstances want me to take any pictures which adds to your point of him being embarrassed of the condition.

@Matt P.

I’m a cash investor. I contacted him as a cash investor, not as a real estate agent. I did later tell him I was one as well and it could be listed, yada yada yada. Based off my numbers an investor price would be 65-70k. Unless there are cash investors in my area that are willing to take less of a discount than me then I don’t know who is making a higher offer. Me and him have sat down for hours discussing options and also about his life. The rapport I have built with him and my offer along with it’s benefits, like 4 months to move out the insane amount of stuff he has, it what has led him to choose my offer. I have never been disingenuous or misrepresented who I was or why I was there. I can’t force him to go with another offer or option.

@Matt P.

It isn’t slimy because all options have been laid out to him with several scenarios. There is no veil in front of his eyes. After all scenarios have been laid out he is still deciding with the path of more certainty which is my cash offer. This is a property that needs a 30-40k+ rehab. If you have ever bought or sold a house in disrepair on the open market you know what the inspection period can reveal and the way buyers can beat up a seller. That is why an “as-is” sale is ideal to him. He is completely aware of the condition of his home.

@Brian Pulaski the only reason I ask about how to wholesale "assign" the contract with personal property attached is because I have another BRRRR property which will be in the midst of renovation when our contract is set to close. I am sure that I can hand both at the same time but in the off chance I cannot follow through with the contract I want to have other options. I am someone who thinks 20-30 moves ahead and also thinks of different scenarios so this is common for me to find solutions to some unlikely outcomes.

@Mary M.

No one is arguing that he could get more from it being listed on the MLS. Ultimately it is up to the seller to decide what he or she wants to do. I have given him the options and told him the scenarios for each. As of right now an off market offer from me sounds me enticing to him due to the benefits he perceives from it. I can't force him to sell it on the MLS.

@Colby Hager

I agree and I do think this is the case in this situation. The owner values the “as is” transaction, the clean break, and the flexible I have with him. I am about to sign a contract with him that is for a close in March of next year. This was discussed between us so that he has time to go through his stuff and take the things himself. He has indicated to me that some stuff is precious to him because they are from passed family members and he does not want other people touching them. I am doing things and helping him in ways that would not be done if it was on the open market.

I do think the motorcycles can be sold for 5k together. I have a friend who repairs them that is coming out to verify that with me.

I also feel there is some gray area of when you have given them adequate information and verified they understand it all. Like I said he is not very well versed in real estate or money. Me telling him that he could get more if he cleaned the place up and did some repairs seemed to go in one ear out the other when he already knows I am willing to pay him 70k for the house and motorcycles and he gets to leave free and clear with his possessions.

I just want to be clear. I am in no way trying to swindle this guy. I have laid out several options including the open market explained to him what would happen if listed at the prices previously explained. He wants to ensure a sale and a guaranteed price before beginning the move out process which is why is has expressed a desire to sell to me off market.

@Colby Hager he wants to take out what is his families stuff he has been left with which is a majority of it but he also realizes some of it is junk and does not want to take. He is also downsizing because it is just himself now and has little family besides his sons who do not live at home so he realizes it all will not fit in the new house left to him by his father