All Forum Posts by: Brian Huber

Thanks all for the responses!  @Shayne Brescia I appreciate the tip.  I'll contact Steve.

Hi Leo, I'm still learning too but shouldn't this be:

ARV $160,000 x .70 = $112,000 - $35,000 Rehab costs = $77,000

Seems like you should be getting this property for around $77K to make it worthwhile.

Just my .02 cents...

@Michael Quarles 

Thanks very much for your posts as well as your invaluable podcasts.  Repeated listens are mandatory!

I've started getting a few calls, and I see a trend in which I ask what the house is worth and they'll respond with, "I have no idea." In the podcast, you suggested they conduct their own research.  Does that typically work?

Also, when I ask what they want for it, they'll flip it back to me and ask me for a number. Do I respond with a lowball offer (i.e. 65% of ARV)?

If I get this kind of response from a seller for one or both of these questions, is it safe to say, they're unmotivated? 

On the other hand, if I put myself in their place, they get a letter from me saying I want to buy their house, I don't think it's unreasonable to ask them for a number.  The investor is the one initiating contact, not me.  That's just one perspective, I suppose. But any insight you might have would be great. Thanks!

-Brian

I spoke to someone recently, who was only interested in getting a number on the phone.  When I told him that I'd need to look at the place to determine repairs, he said he didn't want to disturb the tenants.  It pretty much ended there. 

I'm not sure how to respond to the "I can't disturb the tenants."  My guess is the motivation wasn't there. Any thoughts?

Are REOs listed on individual banks' sites? Or is it just on Homepath? thanks!

Hey all, so I received my first call as a result of driving for dollars.  I returned his call and have plans to speak tomorrow.  He did give me his address so I've been researching options. I probably getting overly excited but I figure this could be a good exercise for practice.

It's a SFH, one story 2BR/1Bath, build in the 50s on one acre of land in the DC metro area. Bought in the 80s for about $175K. Given its VERY small size, it seems there's not much one can do with the current house. Between Homesnap and Zillow, the current value comes in at about $365K. Land is assessed at $247K. Some comps of newer luxury home construction in the area are:

 5/4, 2700 sq ft., $829K

5/4, 4800 sq ft., $935K

5/3.5, 3700 sq ft., $790K

So, my question is, would I look to get a buyer/builder interested in the property to build a new luxury home?  Is that a special group of buyers? Should I shoot for as close to JUST the land value as possible? 70% rule puts it at about $255K.

Any insight would be greatly appreciated. Thanks!

@Stephen Brown 

 thanks so much for all the valuable info!  One more question, is it safe to say that wholetailing is a good strategy if you can't get the seller down enough in price to cover the 70% rule?  Let's say you can only get him/her down to 80-85%.  Or do I just need to battle it out a little longer with the seller?:-)

@Thomas Fortune 

I'd like to know the outcome too:-)

Hi Andres,

@Andres Piedra 

I'm located in Burke, VA. Did you end up finding a title company you liked? We're not too far from each other. I'm definitely up for connecting and comparing notes. thanks!

Hi! What would be a good scenario in which a short sale is the best option for a buyer?

Would it be one in which the owner owes about as much as the house is worth?

Would one have to negotiate directly with the bank for a suitable price?

Thanks!