Potential Deal or No Deal?

Question

I contacted a listing I saw online through e-mail because there was no phone listed.  The listing was from Jan 30, 2008.  I figured I'd ask to see if the house is still available and to my surprise it still is... this might mean that its not a deal but that's why I'm asking you guys for advice...

It's currently listed at $399,000(she said its listed higher on the MLS) and it states that its 15% below market already.. (i know this could be total BS)

The assessed price is 432k, which I know doesn't mean anything towards market value, but isn't the assessed value always less than the market value or am I wrong?
On cyberhomes.com it is listed as an estimate of 491K and the range goes from 442-560K  
The person said that all it needs is paint and sanding of the floors which I also take with a grain of salt... (I told her I was an investor)

Also this is listed with a Realtor and it's on the MLS which gives me doubts about if its a good deal, wouldn't other investors have seen it and passed it up?

To clarify, I wouldn't be trying to get the property for 399,000 but for less say 310-320k and I'd probably wholesale it.....

Brian W. · Answer

Mike Knows what he is talking about!

You must research-research-research!
Just like location - research is equally as important in real estate investing!

The best deals are the ones that nobody knows about.  Get out and find 'em.

Best of luck to you.

Jason Cummins · Answer

Although I do agree with them that you need to get out there and start talking with people first hand a whole lot more than what you are doing, I do not think that you should give up looking for houses online.

And again there is no substitute for getting out there and getting the job done, but I can tell you that you can and will find good deals online.  MANY more people these days are using the internet for anything related to selling their real estate.

I found a GREAT deal online, my second rehab deal, it was a FSBO on craigslist.  They had plenty of people call them, but I was the first, and he trusted me more., and I got a great deal by scouring online.  I spend a good amount of time online looking for deals.

Joel Nielsen · Answer

I've been lucky in that I have a few RE Agents who are "delicate" pit bulls.  That is, they have an uncanny knack for getting the listing agent or seller to reveal much more information than what they should.  When they call me up with a deal I really tend to listen and do my own Due Dilligence.

Great advice from Mike about getting with an REIA group.  I have found that some of these old RE investors get as much of a kick out of helping a newbie out as they do in finding their own deals.  There have also been some great resources on this forum as well.

Best,

Robert Mack · Answer

I have an investor who said he would partner up with me on my first wholesale when I find it and he has a list of buyers.

I understand what you are saying about getting out learning about my farm area, talking with investors and everyone else about my investing.  The problem I have... with myself I guess is that I have yet to do a deal and I feel that people won't take me seriously or won't think of me as an investor when a property comes up that I might be interested in or when I contact an investor about a property because I am new and have no actual experience....  
:
So.. even though I have not done any deals yet would you recommend:

[list]calling investors to form a buy list and should I tell them I am a new           investor with no deals if they inquire at all
Who else should I contact to tell I am looking for investment properties?  Mortgage brokers, Agents, Title companies? anyone else?
Should I start marketing in the paper, flyer's, business cards etc?
Should I make an LLC now and website?[/list:u]

I think some of my problem is fear and I always feel like whatever I do is not good enough.. which keeps me trying to get better  but can also hold me back mentally...

Michael Rossi · Answer

IF you can get the house for $310K and IF it is really worth $442K and IF you can sell it quickly, then it might be a deal.  However, the important word here is...IF!

If you want to be a serious investor, I would forget the online ads.  Get out of the house and learn your local market.  Join your local REIA and meet the successful investors in your area.  Tell everyone you know that you're a real estate investor.  There's a lot more involved in being a successful investor than simply looking at online ads.

Good Luck,

Mike

Account Closed · Answer

Mike,

I can not agree more with you. Nothing against the Original Poster here, but to many people feel the deals will come online or land in their lap. There is no, repeat NO, susbstitute for first hand work and knowledge. Getting out and working your farm area so you know everything about it. You shouldn't have to guess at a home's worth, you should know it cold.

If someone came up to me right now and told me about a home in an area of my farm, I could peg the value within about 5-10K pretty easily.

As to Wholesaling the property, do you have buyers yet? Why would you put a property under contract with the hopes of wholesaling it, if you don't have a buyer lined up in advance and know what the buyer might actually want to pay?