All Forum Posts by: Erica Clark

You don't think that would be like a slap in the face to person sellin? I don't want to be rude. I think I'm way to kind hearted for this, I don't want to insult anyone while trying to get this place. Lol. I jus keep thinking about the fact that this home is VERY old and has a lot of potential with the right renovations.
Ahhh... ok, I am going to just do it and see what happens!
Thanks for the advice and I will let you know how it goes.

Sorry if it sounds insane but forgive me I am a newbie to the whole "real estate world". Ugghhh.... This real estate stuff has mind going 100mph! lol..

Ok so, I am going to give you the numbers and some info about the home because I am in need of some advice.

This home is an early 1900 home. It is listed as a 1950, but it also states that it is questionable and up to the buyer to figure this out. I contacted the National Department of Archives and History and the man I spoke with said from the looks of it on google and the architectural design he would say that it is around a 1900-1920's home.
My reason for giving you this info is, if this home can be listed historic than the price of this home after renovations could be MUCH higher than the number I am going to give you.
Just to be safe and not sorry, I am going to give you my numbers without it being nationally accredited as historic.

This home is 1950sqft. home listed as a 4bd 1ba, but after renovations would be a 3 bd 2ba.

Asking Price: $29,000
Renovations: $70,000
ARV: $130,000 (this is a low end number for a cushion barrier. I believe after repairs this home will sell for much more)

The renovations would include: an extended and upgraded kitchen, combine 2 of the rooms to make one big master suite with walk in closet and and a master bathroom suite, adding a bathroom, uncovering and refinishing all of the original hardwood floors throughout the entire home, add on back screened in porch with an additional open deck off to the side, new fencing and landscaping, a new roof and some modernized upgrading to the additional rooms.

Using that my MAO (maximum allowable offer) would be: $21,000

Now forgive me for thinking like a rookie but I feel like I would be taking advantage of the seller to ask them to lower the price to $21,000.... Seeing that the potential of this home would be worth so much after renovations. Not only is this home very close to the historic part of downtown Summerville, the neighborhood directly across the street has higher end homes that are in the $290k-$460k range. Not saying that this home would be that just giving you an idea of the area.

I also would like to know if someone could enlighten me on the "capitol gain" process and how that works. I am unfamiliar with the aspects of this and would really like to educate myself with this before I take on anything.

Thank you all in advance for your time and efforts,
Erica Clark

Quick question for you that Im a little skeptical about... When you find a private money lender how does that work as far as the profits and percentages work? I had a man call me about investing and he asked me what percentage I was wanting????? I thought the lender gets a percentage of the sell. I was lost, but then he gave me a website that he recommends for what I am wanting to do, dohardmoney.com and he said that he is an investor and he is going to use them on his project... Long story short, I don't know why he really called unless he was just trying to get info or throw me off. He almost succeeded, but I not gonna let one bad apple throw me out the game that easy! :)

Simon W.,
The repair value came from my husband who is self employed in a home renovating business and has 13 years experience. Our realtor agreed that the numbers were about accurate and as fas as our vision on repairs she believes that the home would be a great selling point for buyers.
The comp was not a year off from selling it is a 1951 and the home we are interested in is a 1950. Sorry i didnt word that correctly.

[b]
Hello, BP friends. I am new so forgive me I sound a little uneducated I want to give you all my first break down analysis and get some experienced opinions. I have met with my realtor and walked the house and it definitely needs to be completely renovated, but I am looking at the finished and updated outcome and it can look really beautiful with the right upgrades. It is a 1950 home and we want to keep that older theme throughout just a little more modern. There is also hardwood floors throughout that I want to uncover and refinish. Okay, sorry got a little ahead of myself there... Here are the numbers:

Purchase price: $29,000
Zestimate (zillow.com): approx $86,000
Repair estimate: $55,000
ARV: $130,000

Also, this home is located very close the historic city of Summerville and if I can get the home listed through the department of archives and history that would make the ARV extremely higher! One of the comps within less than a mile from this home and one year difference was purchased at $235K in January of this year, renovated and put back on the market after they had it approved and listed historic for $349K. Mind you this home was slightly larger than my targeted home in sqft and land but with that being said I can definitely see this being a lot higher than my estimated ARV.

Hopefully, you all can give me some good advise and maybe send me in the right direction. I am very confident that this is a great deal and I am working on trying to find a money lender for this project (which seems to be harder than I expected).

Just let the seller know that you have a partner or an inspector that needs to come in and take a look at things. Do it with confidence and dont make yourself seem unsure of what your explaining. As long as your confident in what your saying they shouldnt ask anything else. Hope that works for you and good luck!