Over the last few days I have really been hitting this hard. I have been able to put another property under contract and this is also a great deal.
I found this older investor who was selling 3/1 that had been rebuild about 4 or 5 years ago. He had actually started to do the rehab on his own, being a retired builder, and he was doing a nice job. Unfortunately he has discovered that he has to address some serious health issues and wants to sell. He saw one of my signs near his home and called me to see if I would be interested in buying his 3/1.
We met a few days ago and he showed me what he was doing and it looked good. It still needs about $8,500.00 worth of rehab if you hire it out or much less if you can do it yourself. I did some homework on the property before I got there and found that the ARV is in the neighborhood of $65,000.00 and if the double car garage size building that is on the property would be converted to and efficiency it would be worth much more.
After talking with him for quite a while I asked him what he was looking to get for it. He said "are you a serious buyer or a tire kicker?" No.. I said this is how I feed my family. He started by pulling out all his paperwork and showing me what he had invested in it. It was right at $24,500.00. He told me that if I would agree to pay all of the closing cost that he would sell it to me for $21,000.00. I told him that I can usually close with in 30 days or less, (he's cute he said "I like the less part")
I asked him if he was the only one needing to sign the contract and he said YES. So I said "well can you sign now?" He said "where the pen?" So I took out my 1 page contract and filled it out and he signed it and handed me the keys out of the lock box. No negotiation because I already knew what it was worth.
So I'm putting this out there to all you investors, the total cost is $21,000.00 + $1,500.00 (closing cost) + $5,000.00 my assignment fee. The numbers add up to $27,500.00 + $8,500.00 (estimated) equals - $36,000.00 that's 56% of $65,000.00 (ARV) or .56 on the dollar completed. The going rate for rent is $850.00 per month in this area and it is close to everything.
So if you would like to know more about this property please send me a note to my inbox and would be glad to send you my link for the picture album I have set up for this property.
Look forward to working with you.
"It's not what happens to you that determines how far you will go in life,
it is how you handle what happens to you.