All Forum Posts by: Eric Olsen

 Thank you! I appreciate it. 

submitted offer last night at 15k. contract stated for seller to clear up all back taxes. 

Seller came back and "strongly refused my offer". then said good luck on my investment endeavors. no re negotiations or anything. 

And that was my first offer in real estate investing!

Eric

Yes. Seems as though seller might be playing games here. We will see.

@Kevin Farrell I found that there are taxes owed on the lot to the sum of $4400. This is only information from my online search which only got me as far back as 2012.  Calling the county recorder should get me further back in time, I think. 

I would assume that, IF, I wanted to pursue further that I would need to subtract the taxes owed from my offer.

I am not losing sleep over this though.  Just trying to get as far as I can with it so that I can learn in the process.  I certainly am becoming more comfortable with real estate investing as a whole.  Isn't that what they say, your either making money or learning?

E

Thank you both for responding.

@John Becker Yes, it is an infill lot.  Seller back story...  Seller actually owned this lot and the lot next door over where here lived.  Seller was foreclosed on the house about 4 years ago and also filed bankruptcy.  For "legal reasons" the lot was transferred to his sisters name.  I confirmed this through the county recorders web site.  As for any liens against the property, I have not called the recorders office yet so I am unaware at this point.

@Kevin Farrell My intent is to flip fast and be done.  With an offer of 15K and a resale at 25K, what is your thought process behind that?  Is it to still resell that property a step discount from its valuation to attract my end buyer?

I have not done any deals yet nor have I had anything under contract.  This is proving to be my closest opportunity of a first deal.  One thing that is strange is that I am actually becoming less "excited" about this opportunity the further I get, as it is looking more and more like a real potential deal.  I am becoming more focused and factual in process.

As a result  of my direct mail, I am working with a seller on a land deal in Westmont Il.  Here is what I know....

Lot size 50 x 150

Utilities are available 

Sellers asking  price is 97.5K (I know sellers asking price is irrelevant)

Seller needs cash to pay off about 40K in debt and 25k to rehab home.

Here is how I comp'd the lot. I figured the Sq Ft price for lots sold in the area of similar size then averaged them. I used that average to get the valuation of the lot. 

My valuation of the lot is 53K.

Using 70% places max offer at 37K. 

Homes on this same block have an ARV approx 250K to just below 300K.

I called the seller yestersay to inform him that my research was pointing to  the lot being worth less than what he thinks. I did not give him any numbers at this point. He still wants  for me to make an offer to consider. Clearly has some motivation.

My thoughts are to offer 32K and see what happens. 

Please scare me away from this deal with something  I missed. 

Lastly please excuse any weird verbiage or spelling. This was posted via mobile. 

Thank you, All!

 Just get that phone ringing! once they call you pick up that phone. your first couple of conversations will be awkward as hell but its a fast learning curve that way. Dont over complicate things and just start talking to them. 

What you forget to ask in the first few call is no biggie. call them back and tell them you forgot to ask them something. simple and direct. 

Like Matt Theriault says "go as far as you can see. once you get there you'll be able to see further"

Now go kill it on those  phone calls!!!!

Eric

Networking, networking, networking!  While I am a newbie it is solely myself making the requests with other investors.  My approach in this is based on that saying "you are the average of the five people you associate with the most" so I am selective with whom I make requests.  

However, I am not just making requests for the sake of building my numbers of colleagues.  I make a request when I feel that I have something of value to offer that person this way there is a mutual gain from it.

E

 I understand where you are coming from. As you stated with the honesty, I dont feel the seller is being completely honest  with me however that doesnt alter my approach .  

I did explain my position to her from the start being that this house  is not in my area of investments but offered what help I could provide. 

Hopefully, if the numbers work out, I can get her in touch with a buyer in her area. 

 Dorothy, I sent you a PM.  thanks for your input.

Eric