Gutted house for sale? What do I offer?

Gutted house for sale? What do I offer?

I contacted an owner about a house that was vacant. Turns out that he was not interested in selling the house that I inquired about but had another property he would consider selling. To my surprise he was an investor.

He said he had a house that he bought a few years ago for under $100,000.00. He gutted the entire house and was planning on redoing it. The RV is $ 280,000.00 when finished. He said if I was interested he would make me a deal. He would rather make a profit and not have to do any more work to it.

My husband and I looked at the house ( well what there was to look at with no insides). It is a stone rancher on a great road with several horse farms. The property has 4 1/2 wooded acres and is well...a mess. But most of the work has already been done. The gutting and removal is 1/2 of the work on a rehab. We saw the potential that it had. We would even consider rehabbing it for ourselves.

I have $0 and cannot currently get financing. How can we get creative and purchase this home? How can we get the capital needed to fix it up? I have been focusing on assignments and have never considered actually purchasing a house until now.

Any one ever done a deal like this?

__________________

Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10

http://realwholesaling.com FREE wholesaling tips and resources!

To your success,
Carol Stinson


Carol

I've never done a deal where the house was gutted... But I would see if he'd carry the note til it was marketable or go partners with you on this deal. That's one way to make it a win/win for both of you. Eye-wink

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Cool Elena Cool
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."

http://elenamargaritis.com


Hard Money?

Sounds like this might make a good flip using hard money.

Al

__________________

"NOW GO FIND A DEAL"

Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.

Frank Outlaw


Hard money?

Al, what do you mean by hard money. I am rather new at this.Eye-wink

Where do you get this hard money?

__________________

Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10

http://realwholesaling.com FREE wholesaling tips and resources!

To your success,
Carol Stinson


Hard Money Lender...

Hard money lenders will offer a range of requirements on the loan-to-value percentage, type of real estate and minimum loan size for a hard money loan.
Hard money lenders are lending companies or private individuals offering a specialized type of real-estate backed loan. Hard money lenders provide short-term loans (also called a bridge loan) that provide funding based on the value of real estate that has been collateralized for the loan. Hard money lenders typically have much higher interest rates than banks because they fund deals that do not conform to bank standards. Hope this clarifies it for you.

God bless,

__________________

Cool Elena Cool
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."

http://elenamargaritis.com


Hard money lender?

O.k. So say I get the owner to hold the note for the house then I can get hard money to fix it up? How do I find such an animal? Do They go by the same qualification procedures as the bank? Or am I getting involved with Guedo from the local mafia group?

Either way (hey Guedo is fine if he has money to lend, Smiling) How does Owner financing work? How much should I offer for this property If I am asking for owner financing and I need at least $35,000.00 to put it back together?

If I could find the money there are several houses that My husband could rehab and flip like this one. I just need a way to get the capital needed to do the work. I have owner's willing to do owner financing on these properties.

__________________

Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10

http://realwholesaling.com FREE wholesaling tips and resources!

To your success,
Carol Stinson


Carol,

Hey, that sounds like a great project! If I'm remembering correctly, your husband has a rehabbing business? so this would be right up your alley. I just wanted to say remember to estimate high on your rehab expenses. In our experience, the gutting is the cheapest and easiest part of a rehab. It's the "putting it back together" that ends up costing the most. At least if it's already gutted, though, you know what to expect, the surprises are already exposed. Anyway, if you're going to get a loan for the "fixing-up", just be sure you have PLENTY to work with. It's really frustrating to get to a certain point, run short on funds, and then have to scramble to come up with the rest to complete the project in order to sell and make your profit.

nstreet (Coach Nathan Street) has a SUPER list of hard money lenders that he offered to anyone who wanted it a couple of months ago. Maybe he'd still e-mail it to you if you PM him.

I wish you well, Carol. Sounds like fun (lots of work, but fun) and great potential profit.

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Hard Money

Carol, The HML that I am using, requires a Minimum loan amount of $100K. The LTV(loan to value) must be 70% or less. If you can get your loan to purchase property and cover repairs, and still keep thr LTV below 70%, you can get all the money thru HML. Calculate all your costs including repairs, holding costs, selling costs(if you are going to sell), and any other expenses. Deduct this figure from what you can sell the property for. Also deduct what you want to make as a profit. This amount would be your offer to seller. Search Craigslist, newspapers, or ask the investor you are dealing with if he knows one. Many Mort Brokers have HMLs.

Good Luck, sounds like a great potential deal. Al

__________________

"NOW GO FIND A DEAL"

Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.

Frank Outlaw


Hard money

If I were to put an ad on craigslist looking for HML how would I word it? Do I simply put...

Hard Money Lender needed for investment property.

__________________

Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10

http://realwholesaling.com FREE wholesaling tips and resources!

To your success,
Carol Stinson


craigslist ad

I found this add on craigslist...

Looking for a Joint Venture Partner - Cash or Good Credit

Call - let's get together to discuss this opportunity

Paul 908-251-4313

Is this a potential for the HM I am looking for?

__________________

Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10

http://realwholesaling.com FREE wholesaling tips and resources!

To your success,
Carol Stinson


It sounds like they are

It sounds like they are looking for someone to help with the financing end of a deal THEY'VE got going. But call it anyway. You can get in touch with anyone on there. You never know what you'll come up with, and it can't hurt. In the "Services", "Real Estate" category (I'm guessing that's what you're looking under), you'll find all kind of connections.
I have found that most of them in our Craigslist ads are people either in our same position or people advertising for some program (mostly abunch of baloney), but I did find a couple of really good sources.

Partnering sounds like a really good way to go on the deal you described above.
Just my opnion, though. There's lots of ways to get it done. Smiling

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Estimating Repairs

Hi Carol - I was first going to warn about REALLY REALLY doing your homework on rehab costs...but since your husband is a rehabber guess you got that covered! I went over on my first house by nearly 10k, which of course came out of my built in profit...(no complaints though -still came out on top and learned ALOT).. I still strongly advise and agree with Rina though to pad your expenses - actually adding 20-25% to the number you come up with is safe to cover unexpected items -which there always are. And then if you dont need it - it will come back to you in the end numbers as profit! I wish you all the luck with your financing search - I have no experience with hard money lenders at this point in time.... Look forward to following your success-keep at it!
Laura


Carol

HML or try a method that Dean talked about. Have the seller hold the paper, no monthly payment for 2,3, months until you get the rehab done and you can go to the bank with a prop that has equity. Here is the sticky part, Dean offered this deal, but the down side is if you can't get finance you give up the house back to the seller, with all the repairs done. Risky, OH YEAH. But gives you time to look for buyers and do the rehab also. Construction costs are on you though. I am reaching here for you, trying to find a way....Jan


carol......

Have you totally ruled out ASSIGNING this project to another "REHABBER"?, cause if the deal is good enough, you know that is still an option. Why don't you do what i do and have at least 2 exit strategies, 1) First you have to get the property "UNDER CONTRACT", 2) If you want to try and use a HML.... fine, start calling, and if you can't find one to work with you, then 3) ASSIGN the deal to another "REHABBER". Thats what i would do if it were my deal, SULLY

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YOUR HERO, SULLY


Worth the trip

o.k my husband and I did a walk through of the rehab today and we figure it will cost at least $70,000.00 to rehab. The owner won't go below $140,000. So we have basically said thanks... but no thanks.

I did however build a relationship with one of the investor partners that were selling this rehab. Turns out he is a RI genius. he introduced me to a group called South Jersey Investors club that holds training and workshops at their weekly meetings. He was very impressed with my newly acquired "Bird dogging" skills and asked me to network with him. he is interested in purchasing my current deals and asked me to bring him more deals. He started out doing assignments and now owns multiple properties and has established multiple lines of credit with his investment properties. This guy blew me away with his knowledge of RI, creative financing and real estate marketing!

PS. My new journal entry is a must read for those who value creative thinking. AWESOME!

__________________

Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10

http://realwholesaling.com FREE wholesaling tips and resources!

To your success,
Carol Stinson