First potential deal

[Jay Mitiguy]

Hey BP,

So I received my first lead today from a very small probate mailing. I sent out 6 letters to estate executors and got one back already! That's a 17% response rate! Not bad so far...

Anyways, I'm visiting the property and the executor this weekend, and assuming it's a good deal, how do I proceed? I've drafted a P&S Agreement and an Assignment Contract based on the few I've reviewed. Nothing fancy, 1 page each. The decedent had a reverse mortgage on it, and has an outstanding balance built up of $150,000 or so. The property supposedly needs $25,000 and would be worth $250,000 - $300,000 based on comps I've looked at.

I guess what I'm asking is, is there anything I've overlooked or that I should be aware of when touring the property? The obvious high ticket items like roof, siding, HVAC systems, water heaters, etc, but what else?

Also, when negotiating with the executor, my assumption is that he won't go any lower than what the mortgage balance is, correct? Would there be a better way to handle this or should I base my figures on $150,000 + repairs, assuming he'll let it got for that price? He did mention she doesn't have anything else in the estate and this is all that remains for assets and liabilities. Is it fair to guess that in order to save himself the trouble, he'd unload for the mortgage balance?

Sorry for rambling and the unclear train of thought, but my mind is racing with the possibility of making some solid cash on my first wholesale deal.

Thanks!

jay

[Karin Crompton]

@Jay Mitiguy one brief point - don't worry about doing the title search before you put it under contract. Your contract should specify that the property will be passed to you with clear title, and then the title search would be a part of the process leading up to closing. That's not considered a weasel clause by any means, just a completely normal part of a transaction.