All Forum Posts by: Jared Garza

 Yes it’s on a slab, excuse my lack of specificity! 

The property I’m currently looking to wholesale has a small foundation crack. Obviously it’s not an issue that I’ll have to deal with if I wholesale it but I want to make sure I’m giving my buyers accurate information about the crack.

 It starts at about 3 feet from the living room wall (which is about 7ft from the edge of the slab) and then into the kitchen where it has cracked the tile flooring in the kitchen. 

From beginning to end it’s about a 10 foot long crack. From the research I’ve done it doesn’t seem like it’s an issue, but I’d like to get some input from those of you more experienced than myself. I appreciate any and all help!

I’ll try to keep this one as short and sweet as possible. I received a phone call a few days ago from the grandson of a homeowner. He said he moved down from another state recently to help his grandmother sell an old house of hers and settle other matters.

She had apparently gotten too old to take care of herself and abandoned the house a few months ago to go stay with family in Florida. He said she wanted $15k for the house. $15k is an amazing deal so I said let’s proceed. 

Come to find out, it had been listed on the MLS For $50k the very same day. I contacted the agent, explained the situation and she promptly told me the price was $50k not $15k and the homeowner would accept $35k at the lowest. Early next morning, grandson told me the grandma would take $16k. It's worth well over 16k as-is so I got it under contract with the agent.

My intention is to wholesale the property, typically I would blast it on CL and FB marketplace but I feel that I can’t do that in this situation because of the agent. The agent comes off as unfamiliar with investing so the idea of wholesaling would likely cause big confusion if the agent caught wind of it. I know it’s really none of their business what I decide to do with the property at this point but I still don’t want any kind of uncomfortableness in the transaction.

My buyer pool so far hasn’t bought it because most of them only buy in other areas. My buyers list didn’t bite on my last deal either but it flew off the shelf on FB marketplace, so you can see my predicament. I’d much rather wholesale it than close on it myself. 

I'm going to a REIA tomorrow which I may be able to source a buyer at, but I'm mainly presenting my situation to see if any of you has experience with a situation like this and if you have any tips/advice for me. I appreciate it!! 😁

The property in question is a hoarder’s house who is older and her family has come from out of state to get her into assisted living. I’m going to see it tomorrow but before I go I would appreciate if I could get some insight from you guys here in BP. 

The information on the house is her name followed by (life Estate) so I was curious how it will differ from a normal purchase? Apparently it’s with her son and he is also out of state but is happy to do anything he needs in order to make it work. 

The family who is here to help her (her brother and her SIL) is desperate and needing to close very fast so that they can get back to their home state and resume their lives. 

I’m just trying to make sure that there will not be any hiccups because of it being in a life Estate so that the family doesn’t endure any additional stress. 

And also if you could inform me as to whether the sale differs any compared to if there wasn’t a life Estate. 

Thank you! 

 Looking to wholesale it actually. But i am not worried about making a large cut on it, for all I care I could make 0. The older gentleman who owns it is extremely nice and I’m trying to help him out so that he can afford to take some vacations in his retirement. After it is rehabbed it will pull about $1,000-$1,200 a month in rent when comparing to nearby properties. 

ARV is about 80,000 and from my very uneducated estimation (I pulled from the few sources I found) it'll be about 54,000 to rehab it from studs to a nice house.

 Yeah I’m thinking it’ll be too tight to justify but I’m going to talk to some people and do the math regardless. Thank you for your help! 

 The work is going to be everything interior from the studs. Insulation, drywall, flooring, and of course the big ticket items like both bathrooms and the kitchen. 

 He is asking 23, but very negotiable. If I tell him 10 I can probably get him to sell at that. Just as soon as I do the math and make sure it’s do-able I’ll make him the offer. 

I am not sure of the reason. It has been that way since he bought the property 10 years ago. He had the electric, plumbing, and HVAC installed but got sick and doesn't want to deal with it. I am trying to get a good estimation of what it'll take to get it to selling Condition. The area doesn't call for granite countertops or anything like that, a pretty basic setup will get it to that 70-80k ARV. But 1500sqft is still quite a lot.

I found others throwing figures around like $75-$150/sqft for full gut rehab but those people are not anywheres near Mississippi. And of course the HVAC, plumbing, and electric being done knocks the price down a good bit.

75k ARV minus 30% profit is 52.5k all in. That seems really tight to me for needing a full rehab. Even if I could hypothetically get the property for 10k that leaves only 42.5k for rehab.

 No mold, roof is good (replaced just a few years ago), and the foundation is in good shape. It’s actually on stilts.