All Forum Posts by: Sherry McQuage

Jaron Walling said something that caught my attention, "search for and buy a bad roof, leverage it during the negotiation"....especially of the property has been sitting on the market longer than normal for the current market, a "bad roof" might be a gift from the real estate genie.

My point is this: get good at estimating and fixing a bad roof (or any particular problem found with most houses that sit on the market longer) and you'll get comfortable buying/fixing properties that scare off other buyers.  You can use the "bad roof" or other problem to negotiate a lower purchase price.  You'll learn what contractors are good at such repairs, and eventually people will start bringing you "problem properties" with that issue.

Another related idea: contact a good local realtor and ask them if they know of any on or off market properties that would be a hard sell for most buyers.  Find out why, see if you can learn/hire to fix that problem, and you might have found your niche.

Do you know anyone or have a family member that is licensed in one of the trades?  You might learn from them, hire them, get advice from them.

Best to you!

My suggestion would be to manage it yourself for 1-2 years, then as you acquire more rental properties, you can start using a PM.  Meet other investors in your area and stay in touch with them; you can ask them questions that might prevent problems.

Best to you!

My husband and I have fixed and flipped 2 SFH....we made a decent amount on each. As a real estate agent in the Pinehurst, NC area, the "easy pickings" have long been gone. For years now, investors (and/or husband and wife agent and contractor teams) have bought up the easy fixers. What's left seems to be "tear downs" (in my area) that really wouldn't make sense to fix up, and the owner wants too much to make it worthwhile to buy and tear down to build new.

And yet, there's a guy I know that is buying, fixing, and flipping higher end homes in the area and doing well.  He has been doing this for 10 years, has a team of contractors, and doesn't need much sleep.

I guess fix and flip could work in any market like you said; I wouldn't recommend it for newbies unless they have financial resources to make it through if a flip goes bad.

Fix and flip is good for learning the ropes!

I think it's a good idea to contact the landlord and ask if they want to sell it to you, especially since you're already renting/living there.  Look at Homes.com or Realtor.com to get an idea what that type of property is selling for (look at the ones Pending or Under Contract)...or, look in the county's GIS system to see what similar properties sold for.

Once you have an idea what a fair market value would be, let the landlord (if they're interested in selling) mention their price.  Sometimes you get lucky.

You could even bring up the subject of seller financing (search online for ideas of how to structure a seller financed offer), and make sure a competent real estate attorney helps write the offer documents (if it gets that far).  Good luck!

Interesting!  Is Evergreen a town?  Being a licensed agent does have it's benefits when buying.

Thank you for sharing the good and bad of S8.  When I get some local investment properties, I am thinking of offering to S8.  Good information!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $220,000
Cash invested: $220,000

Bought this "shell" of a house. Heirs let it sit for a few years. Had gone under contract a time or two...I think most people just weren't equipped to finish a property like this. Inside is taken down to the studs; some code violations as it sits. Working on getting a new septic permit so we can add onto it, and increase the bedroom count to 4. Will use as a family vacation house, and rent it out STR or MTR. Sits on a deep water ditch/canal.

What made you interested in investing in this type of deal?

Our investment partner is a family member, and he has a boat. We all wanted a "beach house", and when we found this property it's on a deep water ditch/canal.

How did you find this deal and how did you negotiate it?

Found on Realtor.com.

How did you finance this deal?

Cash, we split it 50/50 with family member.

How did you add value to the deal?

We will expand the septic, add 3 bedrooms and 2-3 bathrooms.

What was the outcome?

Just bought it....

Lessons learned? Challenges?

Working/hiring workers from 3+ hours away can be challenging.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I am a licensed agent in NC.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $220,000
Cash invested: $220,000

Bought this "shell" of a house; seller had passed away unexpectedly during the renovation. Heirs let it sit for a few years. Had gone under contract a time or two...I think most people just weren't equipped to finish a property like this. Inside is taken down to the studs; some code violations as it sits. Working on getting a new septic permit so we can add onto it, and increase the bedroom count to 4. Will use as a family vacation house, and rent it out STR or MTR. Sits on a deep water ditch/canal.

What made you interested in investing in this type of deal?

Our investment partner is a family member, and he has a boat. We all wanted a "beach house", and when we found this property it's on a deep water ditch/canal.

How did you find this deal and how did you negotiate it?

Found on Realtor.com.

How did you finance this deal?

Cash, we split it 50/50 with family member.

How did you add value to the deal?

We will expand the septic, add 3 bedrooms and 2-3 bathrooms.

What was the outcome?

Just bought it....

Lessons learned? Challenges?

Working/hiring workers from 3+ hours away can be challenging.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I am a licensed agent in NC.

Hmmm...the land was vacant (except has lots of illegally dumped trash on it). We wanted to buy it and build a duplex or SFH to rent out. Do you remember the name of the BP member that has experience in this?

Would love to chat with him/her.  Thank you!

Hello,

I had a similar situation in NC...My husband and I (investors) tried to buy a piece of land from the gentleman who had been paying the taxes for years.  All 3 of the "owners of record" on the tax records were deceased.

The seller was the son of one of the deceased.  His attorney said in order to provide a clear title, the seller would have to hire a law firm that was willing/able to do extensive research into heirs, and get them to sign off/away any rights they might have.  

No local attorneys wanted to do such a time consuming, possibly long search, so we were not able to purchase the land.  Seller is just continuing to pay the taxes, even though he "doesn't own" the land...until/unless he hires an attorney to do the title search, he won't ever be able to sell it or develop the land.  Bummer.