Got my first 2 houses under contract!

[Dominique Poindexter]

Hey Guys! 

I'm super excited! I got my first two properties under contract last month! It was exciting and scary all at the same time! I wasn't able to find an end buyer for both the properties but thats ok because I was looking to get  my feet wet with process! Of course my goal is to make money, but I know with time and experience the money will come. Any who, my direct mail campaign is working! I am not able to send out 1,000 letters yet because of limited funds, but I have a small targeted list that has got me 4 good conversations so far. Two of the four I was able to get under contract, the other two are in the negotiation stage (fingers crossed).  I have a question about a pre-foreclosure. My motivated seller is looking to sell her house before the bank comes in and takes it. She owes roughly $170K and $3,500 in back taxes. The house is worth about $248K and the comps in the area are around $200K. The house has been condemned and flooded and sewer wiring issues . Did I ask enough questions? Am I able to get the house under contract for the asking price of the seller without the bank being involved? Is there a way for me to check the foreclosure price online? 

Thanks! 

[Michael Ablan]

Hey Dominique!  Awesome job getting some deals under contract!  Do you mind talking the numbers on those?  

The deal you detailed is one I would recommend leaving alone.  If the comps are 200k, then the house will most likely only be worth 200k.  If she owes 174k on a condemened house with flood and electrical damage, then it sounds like a complete renovation and gut to me, which requires tons of time, money, permits and risk tolerance.  The only option I see is a short sale, but that may be biting off more than you can chew considering you already have two deals under contract.

I'd recommend slowing down a bit and focusing on how you plan on unloading or handling the houses you do have under contract.  You've done amazing in such a short amount of time!  Keep up the good work!