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Asking Price: $319,000
Potential Purchase Price: $277,000
After Repair Value: $365,000
Repaire Value: $5,000
Equity/Spread: $83,000
Assignment Fee: $5,000

Good morning everyone!

I am finally ready to make my first offer. HOw should I go about this? should I just simply call the realtor and let him know that I am interested in making an offer on such and such property?

Thank you everyone for your comments; I really appreciate it! Deal #3 it is!!!

Thanks for your response.

What I did is get in touch with a Realtor that specializes in the area that I am looking to purchase homes in. I was very specific as to what types of properties I am looking for (i.e. vacant/abandoned; SFH; 3 BR; in need of cosmetic work, etc.). The Realtor then emailed me a list of properties that met my criteria. I then went over the list of properties and then picked out the ones that I was interested in seeing. We set up a time to visit these properties. I did my research on these properties (i.e. market value, property value, comps, estimated repair cost(s). This is how I came up with these numbers.

At last! I think I have found 3 properties that I am interested in making offers on. I will give you a brief description of each. I would like your feedback on what you think about the deal.

NOTE: I am going to be getting these under contract and then assigning my contract to other investors.

Deal #1:

Vacant SFH
4 BR/2 FB
1,482 SF Enclosed Area
Land Area: 5,000.00 SF

Asking Price: $230,000
Potential Purchase Price: $195,000
After Repair Value: $282,562
Repair Value: $17,000
Equity/Spread: $70,000
Assignment Fee: $10,000

Deal #2

Vacant SFH
4BR/1FB
920SF Enclosed Area
Land Area: 9,628.00 SF

Asking Price: $199,000 (already being sold $40,000 under value)
Potential Purchase Price: $180,000
After Repair Value: $261,601
Repair Value: $17,000
Equity/Spread: $64,000
Assignment Fee: $10,000

Deal #3

Vacant SFH
3BR/2FB
980 SF enclosed area
Land Area: 8,280.00 SF

Asking Price: $215,000
Potential Purchase Price: 190,000
After Repair Value: $315,000
Repair Value: $10,000
Equity/Spread: $115,000
Assignment Fee: $15,000

I look really forward to your opinions, suggestions, or thoughts, or simply, an approach you would take. I am planning on making these offers to the realtor tomorrow.

Thanks again!

Great!

I am searching for more properties as we speak!

Hey everyone,

Just an update on my first set of walkthroughs....

First, I must say that I feel good now that I have gotten over my anxiety of actually "getting out there" and taking the first real step to RE investing.

Ok, now, my experience...

I had an appointmen with a Realtor at 3:00 on Saturday afternoon to see 3 properties. One of the realtors for one property hadn't responded to my realtors phone call to gain access into the property; because of this, I waited a half an hour for the realtor to call back. Finally she calls back and the realtor and myself began our journey to view the first property. What a nightmare! the Realtor had absolutely NO sense of direction, had never actually seen the property herself, and because of this we got lost trying to find the property and drove around for an hour and a half!! It was so bad that the realtor finally told me that we should eliminate this property because she's not sure of where it is located!

On to the next property. Again, the Realtor had no idea where this property was located, and as a result, ended up following me there because I printed out mapquest directions. So, we arrive at the property. I start taking my notes (using a yellow legal pad) about things on the outside of property that would need to be fixed (fence, landscaping, brick steps). We enter....there is another realtor inside of the house that is the one actually showing me the inside. I am taking notes, and not really saying much....I want to let the realtor do all of the talking. The house was in good shape, other than replacing the fence, landscaping, a few metal bars in the closets that need to be replaced, and fixing the brick steps. The only thing about this house is that it is attached to another house and the fact that it has already been updated, and I'm not sure how flexible the price would be being that it really doesn't need a lot of work. I think I am going to pass on this one.

The next house we looked at was in need of just about everything but structural work....from the looks of it it seemed like an okay investment; then I go into the basement (to be honest with you the place kinda creeped me out; I think it creeped the realtor out too because she didn't walk around with me); in the basement there was water on the floor and it smelled like a serious water leakage problem....I told the realtor right then that I was not interested in this property. So, the realtor and I set up a time to view 3 more properties the next day...she cancelled on me via text message at 3:30 in the morning to tell me that she had been in the emergency room with her daughter all night, and that she has to cancel our appointment for Sunday!

So my friends, I am back on the hunt for deals again....and a new realtor.
I just received an email from yet another investor just waiting for me to assign my contracts....now I just need to find a profitable house already!!

Thanks for listening

E

Hi Karnan,

I subscribed to a 7 day trial with RealtyTrak. I must say that the website is very detailed in terms of providing information about properties (i.e. comps, analysis, liens, etc.). However, I'm not sure how accurate the information is.

Hope this helps alittle

qclemens,

That sounds really exciting. Great luck to you!

I visited some realtors and gave them a typed description of the type of properties I am interested in (i.e. vacant; distressed owners; 3bdr; SFH, the areas etc.). The realtor sent me a list of properties with photos and information about the property to my email, and told me to let them know which ones I would be interested in viewing. ANyway, out of 13 I am interested in seeing 7 of them...so my walk-throughs begin tomorrow. I let the realtors know that I am an investor so this is understood.

Just thought I'd share a little bit about what I'm doing.

MikeOH,

Thanks for your input. However, I am fully aware that one cannot believe everything that someone says just because they are labled a "guru"; that would make me completely naive...and I definetly am not.

The point that I was trying to make was in reference to the course that I purchased, and since I mentioned contigencies I simply stated that the agreements included with the program had a "weasel clause". I am a newbie to RE investing so it's not like I would have known that "weasel clauses" are deemed as a bad thing with some. That's why I am here communicating with other fellow investors to broaden my knowledge so that I won't depend soley on the information from the program I purchased.....see....I would never trust only one source; it's just not my style.

I appreciate your comment!