DM lead. Need some help! Very interesting.

[Ryan Dossey]

We sent out some leads and I just got a very interesting call. It was from a guy who now lives out of state. Property is in a good area 1700 sqft 3/1.5. It is listed with a realtor however he owns it free and clear. He has owned it since 2002. Had roof down 5 years ago and new vinyl done 3 years ago. Said it is on well water but city sewer. Line for water has been ran but not hooked up to the city. It needs kitchen redone as well as bathrroms touched up. Said multiple times on the phone that he simply does not want the property. Said he can drop the agent if we need. Told me to call his agent and tell him I'm a good friend. My thought is that this could be a really good property to use as a rental given the area. It could also be a good flip. He also told me it's listed for 120k but he is going to drop that down to 105k soon. What are your thoughts how should I proceed? My partner is out of the country till next Saturday so I was thinking meet up with the realtor and take some pictures this week. I do have a HML who will do repairs and purchase price with points rolled onto the back end. 1.25% a month and will hold it for 11 months. Could possibly use him to fix it up and then refi to an investment mortgage.

[Douglas Larson]

It sounds like you have a motivated seller and that is a huge component of a great deal. There are many other components like ARV, financing, repairs, rents, etc.

You mentioned that the seller has an agent that could be "dropped." I'm sure the agent would love that - NOT! If you call the agent to show you the place then he should get at least 3%. I am not an agent but I respect what they do.

If you can establish an ARV of 140K and the seller will consider a price of 70K you might have a good fix&flip or rehab-to-rent, assuming that renovation costs are reasonable. If you can verify that the home is truly "Free and Clear", you have a great potential for a seller financed rental. It's just a matter of negotiating the right terms.

Listen to the recent awesome  on negotiating deals and go see that place!

(See especially )

Have Fun and Make Your Own Luck!