Need help! First absentee homeowner phone call today-

[Willy Wallace]

Hey All,

I just did my first phone call to an absentee owner in Cumming, GA. Nice guy...not sure how motivated he is to sell, but hoping to get your input/advice/guidance on what if anything I might be able to do with this one.

Here are the details:

-home is "valued" at 212K per Zillow

-house right across the street is pending...list price was $209,900- nice house

-he owns it free and clear at 180K...with renters in since 2000 at $1,050

-Zillow rent estimate is closer to $1,500

-he doesn't think it needs much in terms of repairs

Maybe I refer to a realtor and earn a referral fee? Maybe there is something else I can do?

Thanks in advance for any feedback!

Bill

[Lydia S.]

@Willy Wallace

Did you get a sense of what he'd want for the property?  If he's not 'motivated', why would he sell unless he got close to market value- which wouldn't benefit you unless you're just looking to obtain a buy and hold for yourself, and calculations indicate profitability.

Unless some states have different laws, a realtor can't pay a referral fee to you for finding a property for them to list.  Per NM Real Estate law 61-29-12A (3), the Commission may ...suspend, revoke, limit or condition a license ...(if)..'an applicant or licensee has paid or received a rebate, profit, compensation or commission to or from any unlicensed person, except the licensee's principal or other party to the transaction, and then only with that principal's written consent'.  I interpret this to include payment of referral fees to anyone other than another realtor.

Anyone have feedback on this?

This 'deal' doesn't appear to have enough room to wholesale, flip or buy and hold unless he's willing to sell for numbers that allow for profit- once you know his bottom line and estimated repair costs, then you can calculate what options exist.