All Forum Posts by: Account Closed

That is perhaps the most candid response that you could have made. Just because you got an ARV estimate from a Realtor, does not mean it is correct. You can always inquire that they justify or explain how they arrived at the number. If there really isn't any activity in the area and you planned on going into a $400K rehab deal, it may have been beneficial to check with an appraiser. Not only are some Realtor's not well versed with pulling comps (so it could have been a mistake), they sometimes typically have too much incentive to inflate the numbers as it affects their earnings.

You plan on sending out 2500 letters? Where and how are you going about getting the property leads? Perhaps the 10% response rate, which does seem thin, is a lead quality issue?

From the 2000+ probate deals that you referenced, on average, what sort of discount (% of market value) do you or anyone who typically utilizes this route see? That was sort of the type of information I was trying to get. There usually are many things that could make a property distressed or not. Death, usually may be a contributing factor -- based on the financial condition of either the deceased or whoever the heir is/are.

The 'neighborhood' comps might be too narrow although somewhat accurate. What is a similar property (number of bedrooms/bathrooms/sqft ect) renting for in the same zip code? You may also have to loosen the rental policy to get it rented and to start getting some cash flow.

Would happen to have any information pertaining to the nature of deals you encounter through the probate route? Any significant margins?

You need to physically inspect the property and have an almost precise estimate of repair cost based on a very specific set of what requires repair.

If 'main street' here means 'busy street', any retail buyer (if they planned on living in the property) often will use the 'busy street' as a factor to justify any 'low ball' offer -- that's if they make an offer at all. 

Clarification.. is the referenced $30,000 total cost (purchase & repair) or just purchase? Trying to respond to some of your questions here (in this section), may be considered a form of deal making. :)

This sounds like a problem you would have in Jacksonville where it is currently a seller's market. Regardless, you just have to find a seller that is motivated to sell. Also, not certain of the factual basis of the realtor's comment if the Orlando market is currently described as being 'warm'. If inventory is currently scarce in Orlando -- certainly want to be on the seller's side.

 Did you say its hard to find anything under $400K? In Florida? Where are you searching?