All Forum Posts by: Dennis Coley

They do have other assets. I know that they own other properties.

Thanks for the reply, Jon. To answer your question, I have no evidence that the bank will even consider a short sale. I do know that these owners are willing to allow the home to go into default. As far as I'm concerned, we are not even at the short sale stage yet. I was just kind of trying to get some thoughts from the experts on here so that I know what I'm getting into and what are the potential ways to deal with this situation.

Thanks again, Jon.

So I have been approached by a friend of mine that is in the real estate business. He wants me to help him figure out this issue that a couple of his clients has. We both want to help figure this out because it can be lucrative for us.....we hope. Here goes:

These particular clients have a house and a piece of vacant land at the beach.

The house has been on the market for 6 months at $1.3 million. I ran just a quick eppraisal of it and it only comps out at $1.2 million.

The vacant property is listed at $600k. The eppraisal on it is ($800k.

The same bank owns both notes and the homeowners are about ready to let both go into default. The suggestion I gave my buddy is that we get the homeowner and the bank to agree to a package deal for both at $1.1 million (800k for the home and 300k for the land).

So, my questions are.....

1- do you think this deal is even worth pursuing and why?

2- are the numbers I suggested decent short sale numbers (am not very familiar with the formulas I should be using on short sales)? If not, what should I be coming in at?

3- who knows of title companies in North Carolina or Nationwide that will do a double close because I will not be able to fund the A to B transaction at those prices.

4- if anyone would be interested in this sort of deal as an end buyer, please let me know.

Thanks in advance or all of your thoughts.

Thanks, Tony.

Thanks again, guys.

Justin, great options. Thanks.

Jon, I guess the reason I was thinking of the option contract was because I don't believe that this is a house that I could wholesale effectively to ensure my investor makes a decent profit. In talking with this lady, it appears as if I'm only going to be able to get her low enough that I can only make a profit by retailing it. Can I still do an assignment if I am retailing it? I'm assuming nothing would prevent it, but I've only read about assignments in the wholesaling realm.

Thanks again.

Thanks a lot, J. I really appreciate the advice.

In this situation, do you feel like the option contract is a good way to go if the numbers work out?

So I contacted a FSBO today (she has not marketed the property at all except to put a sign in her yard). She is a widow that is motivated to sell in order to prevent having to keep up the property any longer. She says that she just can't do it any longer and just wants to move to a townhome. The house has no mortgage on it. The tax value is 158,000. She is currently asking 140,000 but says that she will consider all offers. The house needs no work according to her, but I have not given it a walkthrough as of yet. If she is indeed correct that the house needs no/minimal repairs, I was thinking of seeing if she would accept a 90-day option contract on it for 110,000-120,000 so that I will have time to line up a buyer and do a double closing.

This would be my first deal, so I would welcome your thoughts on this deal and any problems I may be setting myself up for.

Thanks.

Thanks, Guys. I have not visited the house yet, but am planning to on Monday as I'm going out of town tomorrow. I was just kind of throwing out a feeler to see what the deal may be. I think that there is a lot of work to be done but that there is so much potential equity in it that it would be well worth the repair expenses.

There is a house near where I work....and right across the street from a college. The house is 2500 sq ft, 6 bedrooms, 3 baths. It has been sitting for a few months now and the price has been dropped a few times to now at $69k. From just looking at Zillow and not doing a ton of research just yet, it appears that the average price/sq ft in the immediate area is $117/sq ft, which could give this property an ARC of around $290k.

So, why is this house still sitting there? I have not estimated any repairs on this home or anything like that, but I'm guessing that it's looking at about 50k in repairs at least.

My thinking is that a house with 6 bedrooms would be a great college living quarters for students. I'm surprised that an investor hasn't snatched this one up already.

I'm a newbie and really thinking about making this my first investment property. Would the neighborhood play this big a role in a house such as this with so much potential?

Thanks for helping a newbie out.

This may be a dumb question from a newbie here, but if you are doing a title search on your own, what exactly are you looking for?