All Forum Posts by: Corey Rippeto

I'm trying to determine ARV of a property, but all the comps in the area have garages and my subject property does not. Clearly a home with a garage is more valuable than one without, so I was wondering what I could do to get an accurate estimate on ARV. Is there maybe some kind of % amount (to represent garage value) that I could knock off the ARV based on the comps with garages? Should I take a different approach to determine the ARV?

@Anthony B. gotcha. Thanks Anthony!

There's a property I could get under contract for $70k. The numbers on it aren't bad (ARV $225k/Rehab $60k), and I could do a wholesale on it.

There's just one thing keeping me from sending my offer.. It's being rented and the tenant has a lease until September, 2020. 

I haven't dealt with wholesaling properties that have tenants in them. So, i'm wondering.. What should I do in this scenario? Should I just not even worry about it and proceed to lock it down? Or might that be a turn off for buyers until closer to the end of their lease?

@Ibrahim Hughes if I came off offensive, that wasn’t the intent behind my response. In fact, I’m actually glad you asked the question. Looking back at how I wrote that bit, other people likely would think the same as you did. That’s why I made a point of pointing out the purpose of your post- to hopefully clear the air for future readers. :)

Thanks for your response as well, Ibrahim.

@Ibrahim Hughes your manner, and the fact that you picked out that single line tells me the sole purpose of your post was to suggest I might try to take advantage of someone who's bad at handling money. Let me assure you, that is NOT the reason for me wanting to make a low offer. It was only a comment to suggest she may be more receptive to one, if that's what it comes down to. From the info i've gathered thus far, it most likely will HAVE to come down to that.

@Dustin Mathenia turns out she and her sister inherited the place together.. I don't have my hopes set too high, but still letting them know i'm interested in buying in they're interested in selling. 

I wonder if I should let them know it has been placed on Code Enforcement's list of "Dilapidated Properties".. Wouldn't that mean they're in the process of eventually trying to have it considered by the county for demolition? If so, perhaps sharing that info with them would motivate them to sell..

@Lee Ripma Yeah, I guess because of how i'm always running into properties that people bought for super low amounts ($5,000-$11,000) I keep thinking about how sweet it'd be able to snag a deal like that myself, and I got excited thinking maybe this could be one such deal, especially because of the particular situation.. (it's been abandoned for over 30 years, and she had no clue until I told her so) but like you said, I don't want to make an offensively low offer just because. 

Going by the ARV I came up with, and a "moderate" rehab price (haven't seen the inside), I came up with a MAO of $25k. Obviously, with that being my Max offer, and since I haven't had it appraised or even seen the interior, that number could only go lower. Still, though. $5k-$11k range might be too low.

"I'll take a fair deal that I actually get over a screaming deal I lose anyday." I like that. Thanks, Lee. :)

@Mary M. yeah, that makes sense. I definitely want to give them a fair offer. I honestly don't think she has any idea what the place is worth because she didn't even know how long it had been abandoned until I talked to her.. So, I was considering making a low-ball offer, but I feel like i'd be taking advantage of her by doing that, and I don't want to be that person. Plus, as you said, i'd be more likely to get the deal this way anyway. The appraisal thing is a good idea too.

Thanks for the feedback, Mary. :)

@Mary Mitchell according to the background check I ran to find her, she is 57 years old. I also noticed on the background check that she went through either multiple evictions or one very very long one (records go 2001-2007 from 2 different plaintiffs alternating) so that, plus her owing 2 years taxes gives me the impression that she might not be the thriftiest money handler, and maybe she’d be more receptive to a low offer, (such as paying the 2 yrs of taxes on it for her and paying her a few thousand cash).

What do you think? Should I try making a low offer just to see if she’d accept it? Or should I offer what I think she’d take? (while still making money of course)

@Lynnette E. Lots of good points there! Yeah, it seemed odd to me that she wasn’t listed as the primary owner so I was thinking maybe she just didn’t finish the process or something.

Like you said, I’ll just have to reach out and find out what the deal is. Thanks Lynette! :)