All Forum Posts by: Gregory Van Liew

So this guy brings you a potential deal for $50,500. Since you put yourself out there for people to bring you such deals, did your evaluation of that property indicate that you could make the return you wanted from it? You did perform a financial evaluation of the deal before posting, didn't you?

I haven't done a deal yet: I over analyzed the last one to paralysis (yep, I did) and lost it. But I started my analysis based on the offered price, and then did a follow-on iteration at a lower price. I knew that the seller had recently gotten the property for $0, but that was his deal! My potential deal could be summed up as, "Can I make money from the deal as presented?" If that deal had been shagged for the prior 30 days for all the world to see, but I had not, I don't think I'd be telling the world how badly I was being taken advantage of by having it then offered to me at a premium.

Thanks for your quick and insightful response, Tom. I have no experience with income property or rehabbing, and this potential deal may be a little too complex given those factors. (The land value is 56k.) However, I finally made contact with a mortgage broker  whom I know and trust, and he has offered to connect me with team mates in his network.

I'll let you know.

I have found a small house (2/1) that is available for little more than the value of the land it sits on. The house needs everything: Roof, gutters, siding (asbestos shingles nailed over older cedar shingles), drainage abatement, rehabbed bath, total kitchen, replaced flooring (half), refinished flooring (other half), back steps, total landscape, HVAC (old furnace is missing), insulation (2" in attic; none elsewhere) additional electrical circuits, plumbing includes iron pipes, interior trim and paint. Owner wants 65k. Comps in neighborhood average >140k.  My carpenter walked through it with me and thinks the work can be done in two months, for around $30k with my sweat equity included (I figured closer to 45K).

Am I nuts to make an offer? And if I do, can I use an off the shelf "Offer to Purchase Real Estate" form?