House for sale by Owners - Questions

[Kevin LIVINGSTON]

We have a deal in front of us and we need a little advise. Some friends put us in touch with this deal and we want to help them and ourselves to a win / win

1100 s.f. house 3/1.5 in an ok neighborhood. Clean the carpets and its ready to rent. Very well keep little house. Newer Heat and air. New windows. Roof 10 years old. 

The owners are wanting to sell fast(leaving town) and do not have a Realtor yet. They have looked on Zillow and said it is worth 80,000. I show this house should sell per the comps in the area for about 73.000  and I am sure we can rent it for 850.00 a month. We want to buy and hold. it is only 4 blocks from our home. 

Offer is not been presented yet. Any advise? 

 Where to go next? We have bought at Auctions and with Real estate Agents but never from the owners. Do we need to get a lawyer to make a contract and them find a closing company? Should I get my agent in on this? Any advise will help. 

[Account Closed]

Find out if there are any liens. first ask the seller. Then confirm with a title search (by title company). If they own it free and clear explore seller financing if they are very motivated.

After you get a clear title I would suggest having a RE attorney Draft a purchase agreement for you if you decide to purchase. That attorney may also suggest a title company for you to use if you do not have one. 

Before making a offer be sure you look through the numbers much deeper than Zillow. Understand the repairs needed to the home to get it rent ready. Your financing is specific to you and this deal so ensure that you can make this a solid investment with the financing you are able to acquire ( if any).

Hope this helps. Deals have many many factors to give you a specific guide to take is impossible.