F.S.B.O? any advice?

[Christine Maurer]

Going to look at my first F.S.B.O. Anyone have any advice? do's or do nots?
Are they a better deal vs. finding a property to rehab? Thanks
:help:

[Calixto Urdiales]

Well it all depends my friend on the current situation the home owner is in at the time. Some of these homeowners are in default and are stuck between a rock and a hard place. This may be a good chance to make money and at the same time help the current homeowner out of a sticky situation.

If not in default they are probably motivated for they do not have the marketing skills of a real estate agent and need help getting the property off their hands.

[Jason Cummins]

It depends on what your exit strategy is. Really no one can answer that question. There are a lot of FSBO's that you would have to rehab, so I do not really see the difference.

Are you buying to hold? Are you trying to wholesale them? Are you trying to fix and flip them?

[Vernon B]

Try to find out what the owner really neads to get out of the sale. If they need cash..How much, are they relocating..why, foreclosure..., you get the idea. You will need to build a rapport in order to get this kind of personal information from them. You goal is to get a good deal on terms or price. Terms in my opinion are better.

[Will Barnard]

Jason hit the nail on the head. Just because it is a FSBO does not mean it does not require a rehab. There could be a number of reasons why the seller chose to sell by owner rather than list with an agent. Realtors are not all great and often times are worthless and know less than you do as an investor.
Being a newbie investor Christine, you need to plan an investment strategy first before searching out properties.

Good luck.

[Brandon Schlichter]

I do alot of FSBO previewing for my real estate business.

I find that the MAJORIY of FSBOs overprice the property by 10-30% from market value. There is a minority that does underprice, these are individuals that don't do much checking on the state of the market or the like.

Just make sure YOU know what homes are worth and the costs to repair things.