I'm starting to get back into routine of looking for new properties. Two days ago, I went through my lists of contacts and emailed people who responded to my post on birddogs. One person responded with a property and I checked it out yesterday at lunch. I don't think this one will work. The guy thinks it will sell for $210,000 to $215,000 when fixed up, but I don't see it. The neighborhood isn't that great and the comps I am pulling show prices in the $170,000 range - which is his asking price. The guy is a real estate agent and the property has a sold sign on it from another agency, so I'm thinking this guy is a wholesaler. If I was going to rent the place, it might be worth it, but for a flip, that price isn't low enough.
I'm curious to see where this guy got his comp figures from. I found two recent sales close to that price range, but they are in better neighborhoods (although just a couple blocks away). Coincidently, if you take 80% of the midpoint of his comp range ($212,500), you get his exact selling price - $170,000. Since I listed 80% of FMV as one of my buying criteria in my email, it makes me wonder if he just worked backwards from his selling price to tell me a comp range that would meet my requirements.
Thursday, November 03, 2005
Getting Back In The Swing Of Things
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1 comment:
Glad to hear you're back in the game, Shaun.
Regarding birddogs ... Over the last 5-6 months, I've received emails from about five people asking me if they can birddog for me. I send them my approval along with my requirements, but have gotten nothing. I'm sure the majority are eager newbies that have let life take over their dreams (or maybe all of them?).
BTW, from the sounds of your birddog's referral, you may be correct.
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