All Forum Posts by: Alex Collins

Hello BP Community,

I have a cash deal opportunity and I've never done a cash deal before. The seller also has a mortgage on the property. What're the steps which need to take place to complete the home purchasing process?  Grateful for any knowledge/information! Thank you.  

Hello @Chris Seveney

Real estate is all new to me and I've very much a novice. I thought I could just have a title company do some research and provide me with information about her property (Liens, unpaid debts etc.). Also, I plan on purchasing this property with cash.

Hello @Jay Hinrichs

For some reason unexplained she didn't look into having her HOA pay for it.

No @Ken M. it isn't "by guess & by gollie" I had a realtor friend run some comps in the area and $180,000K is the value. Also I'm fully funding the deal with personal CASH. Furthermore, she's a distressed seller looking to get out quick and doesn't have to finances to fix the property. She currently just moved into an apartment with her elderly mother due to personal reasons and now her bills have doubled so she needs to sell ASAP.  

Hello!

Backstory: As some of you know based on previous post of mine I've found my first "possible" real estate deal.  A co-worker of mine is selling her condo (which is not listed on the market) and is allowing me first dibs. It's 3 bed 2 full bath and 1,300 sqft. Currently valued at ~180K. She still owes 57k on her 80k mortgage. Although it's valued at ~180k I'm thinking about offering her 90K because it needs some work. Both bathrooms need a complete remodel as well as the kitchen, the ceiling in 2 of the bed rooms are bowed (previous roof leak that was fixed) so new ceiling drywall, appliances, flooring, and paint throughout. I'm assuming I'll need 35-40K for the rehab which would bring my investment total to around ~130K. I've already had a home inspection done and it basically told me what I already knew about the property. I'm now looking into having a title company do a comprehensive title search before officially putting in an offer. 

If I was to purchase the property from her without realtors involved on either side how would I do so?  What are the pros/cons of doing a deal in this manner? 

@Paul Cijunelis

Rent in these areas go between 1,200-1,400. I just got off the phone with the HOA and they've reached their allowed limit for LTRs so it's looking like a flip deal.

@Paul Cijunelis

Yes, this property is located in indy. A ceiling in one of the bedrooms need repaired as its "sinking" in. Apparently there was a roof leak which has been fixed but the seller didn't want to spend the money to fix the ceiling. All appliances need updating as well as a fresh coat of paint and new flooring. I'm not sure what else to expect. Ideally I don't want to spend more than 15-20k on the rehab to be as profitable as possible. Also the distressed seller is selling for 110k and the prop is valued between 170-200k on multiple sites. However comps are looking like it'll sell for around 180ish.

It's an off-market deaI. I'd either flip or make it an LTR. I have over 50k for renovations if need be and I have private funding for the purchase. I have 2 good friend RE agents available if need be but I think this might be a "transfer of loan deal" just depends. Thank you for you knowledge and insight. My thoughts were to have an inspector come out rather than a contractor to do the general assessment. Based on your response that's where I'll begin then follow up with a contractor for the ticket price.

@Nicholas L.

Good Morning BP Community,

I think I found my first REI property! Lets GOOO! This is simultaneously exciting and nerve-racking. I need your help BP community. This potential buy needs a little work done so I need someone to come out and just do a general assessment of the property. Is it best to have a contractor come out and assess the property or an inspector?

Hi @Steve Lehman,

Unfortunately I was working during the scheduled REIA events this week. However, I will definitely be at the next meeting the first Thursday of January. I look forward to connecting with you here in the next few weeks.

Best,

Alex Collins