All Forum Posts by: Crystal Smith

@Account Closed With the numbers you provided it's a deal. I recommend you add a CAPEX to your yearly budget.

There's no such thing as a PA format standard for investor to investor deals.  Every deal is different and negotiable.

General comment:  You asked him to put in the $5K structural issues clause.  If he's put the clause in the contract then get a professional over to the property to assess your risk. After which you can make a business decision on whether or not you should proceed.  

@Mike Doubek  This link will take you to some local investment clus. Illinois Real Estate Investment Clubs.  Also hook up w/ @Brie Schmidt .  She runs a monthly Chicago meetup.

@Mike Doubek You're suffering from analysis paralysis.  This business isn't easy, but it's not rocket science.   Find a mentor or 2 or 3 to learn from.  As I break down your question:

• If you're going to wholesale it's not about your criteria, it's about the criteria of your potential customers. Ask your potential customers what they are looking for & where.  As in any business when you understand your customers criteria you can then work on a plan to meet or exceed their expectations.  
• While you're learning what your customer wants, use your backyard as a farm area to practice finding "motivated sellers".  
• See if you can get an investor friendly General Contractor to allow you to tag along as he's estimating the cost of a job.  With that said, every GC's bid is wrong, but at least you'll know more than you know now.  
• Market Analysis/Comparables- Become an assistant to an appraiser, or an investor friendly realtor or a successful investor.  They live & breath this stuff everyday. 

In most markets 2 bathroom homes sell & rent faster than 1 bathroom homes.  Rather than speculate I recommend you get some sold & rental comparable data for 1 bedrooms.  The data should include days on market.  Get a separate run of 2 bedroom comparables.     Compare & contrast the value & days on market.  Then decide if it's possible or worthwhile to invest in a 2nd bathroom.  

Regarding the deal being thin: If you're objective is to buy and flip then a thin deal is high risk. If your objective is to hold then may be ok. Really depends on your own ROI goals.

• You can't make offers on retail listed REO properties & expect them to be accepted.
• The REO agent's customer is the bank. Their job- Get the highest price for their customer. You should consider getting an investor friendly agent, but that doesn't mean an REO agent.
• Your "buyers" who are supposedly looking for 60 to 70% discount most likely are bidding on the same properties thru their own agents;  so you're competing against you're own customers.  You may want to consider a change in strategy and find your customers discounted off market deals.

@Kenneth Webb We may be able to help.