All Forum Posts by: Obed Calixte

The experience didn't go as planned, but one key thing that stood out in your post is that you realized that you do bring something to table.

Focus on your energy on what you do bring to the table and use that as your competitive advantage to grow.

What are the issues with the home?  And who do you envision your target buyer to be?

If you envision it to be for move in ready buyer- You would need to determine what the costs would be to repair the property and how that would impact the sale value.

If you envision it for a cash buyer - It may not be worthwhile to do anything to the property

If you envision it for a savvy owner occupied buyer - They may be able to qualify and use a Conventional Homestyle Loan or FHA 203K loan to wrap the rehab costs into their mortgage.

Just some thoughts. 

Is holding the property as a rental viable?

How long are similar properties sitting on the market? What are other sellers offering to get deals done (rate buydown, money towards closing costs, home warranties etc)? 

Walk similar homes nearby to see what they are doing or not doing.  

If not doing already, gather feedback from potential buyers. Use that to identify what their biggest holdback is. 

Has your contractor walked the property? That would be your best source of info.

Negative on qualifying for a 1031 Exchange but congrats on getting a check at closing for your first flip!

1 - Make more offers.

2 - Get better at estimating rehabs. Either yourself, or pay a GC a small amount to give you a bid prior to submitting your offer. That will reduce your need to renegotiate on price after going under contract

3 - Use a local Title company net seller sheet to calculate estimated closing costs. 

4 - Find a hard money lender that can close quickly. 

5 - Practice patience. Home values are moderating, so it will mean being even more conservative on numbers. The right deal will come. 

There’s two good ideas above.

What’s their reason for selling? Is it solely to retire out of the business or do they need the money?

Understanding their objective will help guide you.

Welcome! What drove your decision to focus on RE investors mostly the past 2 years?

Welcome - you're definitely in the right place. I'm sure the "Real Estate Development & New Home Construction" forum would enjoy your insights.

How did you come up with the repair estimate? Did you already purchase the home or  are you currently under contract? It's a little unclear where in the process you are currently.

If you haven't purchased yet, you may benefit from looking at the 203K loan. The loan will allow you to wrap the rehab + purchase cost into one loan.