All Forum Posts by: Sean Kelly

Yes I agree -- thats what I said. My question was are any other options? even to help the lady out

I've never done a wholesale deal so looking for some insight.

I would buy/flip but there's not enough equity for me since I'd have to do hard money. What are my other options? Try and contract it then find someone who can make the numbers work?

Divorced mom of 4 is about to be foreclosed on 8/24. She got the house but his name (not hers) is on the mortgage and is 8months behind in payments. Her motivation is not to save her credit (since it wont be affected, according to her) but to have enough $$$ to keep her on her feet for the move.

Year built: 1997

Everything in the home is original

Loan payoff $129k (including areers), current monthly payments $900, $8k in areers 

ARV (conservative): $190k

Forecloses 8/23

-best/closest comps I could find: https://www.realtracs.net/listings/views/filmstrip?listingIds=2105851,2080337,2075036,2089370,2049903&fieldset=agent-full&format=report&expires=1504320495&signature=hJ3..GsrjO9FaTGB5yBH2gMcW$QRiKxTb~qfU*YrVtHX

- average days on market - 9

- median sales price $197k

Which, would make a conservative sales price of $190k. Though may be able to get $200k

Work NEEDED ($30k?):

- New roof (no issues, just an original roof)

- Paint (2 bedrooms, odds and ends.. maybe $2k of painting. $5k to do the whole thing)

- water damaged/stained ceiling in kitchen from broken bathtub drain upstairs

- HVAC drain pipe broken in exterior wall of garage. Would need to gut wall and maybe do mold remediation. Affected area looks to be ~5’x10’

- front porch railing and support columns are rotted.. all need to be replaced and painted

- 1 window in bedroom needs replaced

- my partner felt like the house was settling in the middle a bit but I didn’t see any visual signs of cracking around door frames or window frames?? 

Talk to me

Hey guys. This is a first for me. Got hit up tonight about a distressed property owner with a foreclosure sale of 8/24. She is in the middle of a divorce and she and her husband are both on the deed and note. I dont know any details yet except she thinks she owes $122k and the home needs maybe $5-10k of work. I'm confident the market value of that property is $190k+ I'm a buy/hold investor w/ my RE license but have no desire to hold this. I have private funding in place to nab it, so planning making a cash offer then flipping and listing. I have not seen the property yet planning on it today I've not had these convos w/ a distressed seller before so... Help? What questions do I ask? How do you deal w a divorce situation and getting the estranged spouse to engage/sell? What are my options? How do I verify the true payoff of the loan and any outstanding taxes etc?

Hey guys. This is a first for me.

Got hit up tonight about a distressed property owner with a foreclosure sale of 8/24

I dont know any details yet except she thinks she owes $122k and the home needs maybe $5-10k of work. I'm confident the market value of that property is $190k+

I'm a buy/hold investor w/ my RE license but have no desire to hold this. I have private funding in place to nab it, so planning making a cash offer then flipping and listing. I have not seen the property yet planning on it tomorrow

I've not had these convos w/ a distressed seller before so...

Help?

What questions do I ask? What are my options?

Pics? Could be lots of stuff.. ground water to poor sloping around the house....

well thats what I mean -- its not a complicated job. Just strenuous and intensive. Its really manual labor. Spray the ceiling w/ water, wait 30min, and scrape it. if someone is willing to do it for for .50/ft why not? Thats what I'm trying to gauge here -- risk:reward. 

great tip thank you -- it was built in 02

any insight on pricing/how serious i should take this w/ a hardcore drywall guy vs. some guys who scrape rooms for $50/room?

Just bought a 3/2 rental I'm updating. It has STOMP/STRIPPLE ceiling texture

Anyone have any experience hiring someone to do this? I tried on my own and it was easy enough but I wanted to kill myself after an hour.

How "professional" do I need to have a scrape job done? 

I feel like its fairly simple--spray the ceiling w/ some water and scrape down the texture. then skim where you need to and paint it flatI ask bc I've gotten 4 quotes:

-$500 to scrape and skim if needed

-$400 to scrape and up to $300 to finish/skim

-$1750 to scrape and skim 2 coates

-$1375 to scrape and skim 

Such a huge gap. is there enough to mess up here that i'd need to pay over $700 for 865' of ceiling to scrape and skim?

Hey Mike! Thanks for chiming in here -- really appreciate the feedback. I ended up backing out of these deals during the inspection. new roofing and some other issues made it a lopsided deal so i passed.

your cap rate estimates include debt service, which traditionally arent included in a cap rate, thus the discrepancy. and the IRR was based on a 10% cap (not on my own numbers) that was market specific

hope that makes sense!

all the best

sean

love this great resource tips