Deal off the MLS

[Raad Qumsieh]

Hopefully this will be my first deal! I have been trying to find properties on the MLS for 3 months now with no success whatsoever. The market is so hot and competition is high. Anyways, I have a lead from a bandit sign just called me today and I'm going to look at the house next week. Seller asking price is $69,000. They have mentioned they have problems in the basement and it needs to be waterproofed. Water leaks in there A LOT. They mentioned basement and outside has cracks(horizontal) I'm not sure if the walls are bent or curved in yet until I check it next week. The house is 106 yrs old in a nice old neighborhood, all houses there around that age. Comps are selling there around $130k-$160k, but they are nicely rehabbed! My question is, should I take a contractor with me to the first meeting with the seller to see the property as I am no expert on repairs at all? And should I offer less than her asking price (of course depends on how major are the repairs)? I heard from one of the flippers that if you are not "embarrassed" from your offer then it must be a bad "high" offer. What do you guys suggest? Any input would be appreciated as this would be my first experience in the world of investing and flipping! Raad

[Mindy Jensen]

@Raad Qumsieh, horizontal cracks are a huge red flag. They can indicate settling, foundation shifts or water damage. I haven't seen the property, obviously, but horizontal cracks are usually serious business.