Here is where I detail my adventures in real estate. It's meant for people who want to get into this investment area but need some encouragement, help, or just a general push in the right direction. Hopefully, by detailing all my experiences, you'll see it's really not that difficult or scary.
I am keeping an eye on the property I talked about earlier in the week. Sure enough, today they dropped the price by about $3,500. Still too slim of a deal for me, but I'll keep watching it...
Posted by
Shaun
at
9:04 PM
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6 comments:
Why dont you get in touch with the homeowner directly and work out a sub2 and sell it from there on a Rent to Own?
Mike
First Source Financial, USA
Well, first of all, going around the person who brought me the lead is, in my opinion, not an ethical thing to do. Second, this property has already been to the foreclosure auction and the company listing it on their website bought it, so there is no homeowner to talk to. They've already been evicted.
Hey Shaun. You could always submit a lowball offer to see what happens. You never know! Working with banks in my area, they usually counter for a few $1,000 less (if at all), but I've heard some (especially with real dumps like this one) may just want to unload it for a loss. Another plus in your favor is that banks want to get rid of their inventory before year's end.
Perhaps I am not making myself clear. This property was purchased by a company called buyazforeclosures.com. They are not a bank. They are property wholesalers who buy houses at auction and resell them to investors. I know one of the owners and his wife is my RE agent. I know how they work and odds are they aren't going to drop the price much further. That said however, if they have a property in their inventory for too long, they will put it up for auction (their own private auction, not a public foreclosure-like auction), so there is still a possibility I can pick it up cheap, but that would only be after most of their clients have already passed on it at their listed price.
Shaun,
Sorry, I thought it was just another forclosure site, I did not realize they purchased the homes for resale.
Mike
First Source Financial, USA
Hmmmm. Maybe submit an offer with a long expiration date. That way, if they don't receive anything and drop the price to (or below) your offer price, you can get it. Since you know them personally, you could even ask them beforehand if your offer would be something they wouldn't dismiss outright (i.e., something higher than they could percievably get at an auction). At least this way you would know whether this deal is worth eyeballing any further. :)
Another suggestion would be to offer an equity split. Purchase it cheap, rehab it, and give them a percentage of the profit from your ARV resale.
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