All Forum Posts by: Adam Demchik

Sam,

Thanks. I met with seller yesterday. I asked her what she thought her house was worth. She gave me a number that was $300 over my buy point. With a little negotiation I should be able to get it cheaper than I was planning which is always a bonus.

Unfortunately, when we started talking about an offer I think she got a little nervous and wants to wait over the weekend.

I am in a similar situation with an elderly person who wants to move in 4-5 months. she is motivated to sell but should I lock it down now or wait it out without a contract?

I'm meeting with a seller to view their house which was just passed on to them. (I will be looking to rehab it) I already have a good idea of ARV and during the walk through I will be able to quickly come up with a repair amount. The question I have is regards to offer presentation.

1.) Do you ask the homeowner what they think the property is worth or what they would like to sell it for?
2.) Do you make an offer on the spot with purchase agreement in hand or do you call back in a day or two with an offer over the phone?
3.) Are there any ways to make your offer more attractive other than no inspection, cash, etc.?

Thanks in advance.

Welcome to BP. The Macomb REIA meets at the MCC South Campus (12mile and Hayes) once a month.

Glenn, excellent rehab and great job on recognizing "green homes" as a marketing niche. Couple of questions:
Do you find that customers are willing to pay extra for a green home?
What kind of wood flooring did you use (are you looking for sustainable woods or is it synthetic)?
How are you finding homes with enough spread to allow for the extra investment?

Trevor...I wouldn't count on learning a ton from the class. It is pretty basic information that you probably already know. I did get my license for the following reasons (not in any order):
-Commissions (about 2% after your broker takes a cut)
-Access to the MLS for ARV
-Allows me to talk directly to other agents
-Allows me to put as many offers on as many houses as I want at any price
-Speeds up my response time.

Good luck

Ok...I updated my criteria as follows:
-farm area zip codes (15 total)
-home sqft less than 3000sqft
-Notice of foreclosure auction in the last 6 months
-greater than 40% equity

Still only 33 leads. I need to get to about 100. Any thoughts?

Hey all. Just got done working on Listsource to generate a list of leads with the following criteria:
-10 mile radius from my home area code
-Mortgage value of 1-200k
-home sqft less than 3000sqft
-Notice of foreclosure auction in the last 3 months
-greater than 40% equity

My criteria may have been a little narrow and I only generated 10 leads. While this wasn't the issue, my issue is that Listsource has a $50 minimum. Has anyone used a similar site to generate leads without the $50 minimum?

thanks

Assuming that you have 4 units all rented at $580 per month, using the 2% rule I wouldn't pay more than 116,000. That being said some markets do not work with the 2% rule so you may have to budge a bit on it, but 194,000 is pretty far from 116,000.

John,

I always start with the 2% rule. So if you are going to pay $100,000 the property must generate a minimum of $2000 in rent per month. I have found this tough to find in my area, but I have found it. Or going backwards in your case you are getting 1420 per month in rent so I wouldn't pay more than $71k for the property.

After that you can assume 50% of your rent will go to expenses..so on the $1420 per month rent $710 will be in expenses. If your property passes both criteria then I would move on to a full analysis of the property.

As a note I worked the numbers on a property about a month ago and based on the rent found that it wasnt worth more than $75K. The list price was $120,000. Initially the seller said no, but now they are submitting my offer of $75k as a short sale to the bank.