All Forum Posts by: Jody Schnurrenberger

@JD Martin, this thread has converted me to LEDs!  :-D  I'm glad you enjoyed the thread as well.  :-)

So, I can't say for sure that my plan works because I'm still in the process right now, but I've been prepping a For Sale By Owner for a future low ball offer.  I've told them that I'm an investor and I can't pay what a regular homeowner can pay or I wouldn't make any money.  I also told them that there isn't a right or wrong answer, but they have to decide if they want to wait for a homeowner who can offer more or if they just want to be free of the house and if we can do it, I will do my best with an offer, but it won't be what they are asking.  

I twice told them "no offense, but the house isn't in very good shape" and I also told them they were asking over what the county says it's value is.  (I'm trying to help them see that their asking price isn't realistic.)  I told them I'm trying to help them and am asking other investor friends to take a look at the property too, in case one of them wants it because I want what is best for the house and the neighborhood.  The house is boarded up and I told them that isn't good for anyone, so I'm doing what I can to help.  

I've told them it's a seller's market right now and most houses in our area are being sold between 1 wk and 1 month after going on the market, so if this house has been for sale longer than that (it has) and he hasn't had any offers (given the condition and location, I'm assuming not--I'm looking to use it for Section 8), he should really consider an investor's offer.  

I also told him that, no offense, but most homeowners wouldn't be interested in the house because most homeowners want a nicer house, even if they end up trashing it later.  I told him that if he sells to an investor, they will rent it out and will then have to take good care of the house to keep it rented.  (Or at least in theory they will.)  

He hasn't paid his taxes yet.  (I suspect it's an inherited house.)  I plan to look at the house inside in person (I'm out-of-state) next week and will tell him about the taxes, whether I decide to offer or not.  If I decide to offer, I'll tell him about the taxes and that I'll pay them if we can get into a contract before the end of the year.  

I'm trying to slowly let him see that his offer isn't realistic and that I want what's best and am not just out to gouge him.  When it comes time to offer, I'll list all the things that need fixing and how much it will cost so he knows I'm not just making up offers.  But since the county says the house is only worth $22k (he wants $25k), it won't be long before I'll reach that in repairs if the inside looks like the outside.  If I need to, I'm not beneath offering him $1 just to get it off his hands.  But I'm hoping not to go below $5500 because that's what the land is worth, so it only seems fair that he should get at least that.  We will see...

Oh, and I'm keeping him up to date about other people's interest levels, so he knows I'm honestly trying to sell his house.  I told him I don't care if it's me that buys it, but I want someone to because it's what's best for the house and the neighborhood.  But whenever someone says they aren't interested, I use that opportunity to gently remind him of what he's up against in selling this house.  ;-)

@Linda S., thanks for the pictures and wonderful ideas!  I think you might be the only person who mentioned fencing.  Also, I've been thinking about ceramic tile for the kitchen and bath (maybe something I got cheap as leftovers and mix and match complementary ones or something), but I think it's great that you put it throughout the house!  That living room looks wonderful!  I'll look into that and see what I think.  :-)  I'm so glad you joined the thread!  Thank you!

Oh, and don't forget that you usually have to mail out for a very long time.  Don't even expect a response until your 5th or 6th mailing (though it could happen sooner, but don't expect it) and some people won't respond until you've been mailing for a year or more.  But the more folks you mail, the more likely you are to get responses you can work into a deal.  :-)

@Peter Sinclair, those rooms look so clean and beautiful.  :-)  Thanks for the pics!

@Heidi Wilson, I love your target market!  That's awesome and so creative!  I'm looking at a seriously distressed property, myself.  I'm concerned as it's my first, but we will see.  :-)  I'm open to any suggestions.  lol

While I haven't posted a pic yet, there is a button at the bottom of the box where I am typing that says "Image" so I assume you click that.  :-)

@Heidi Wilson, your bathrooms sound amazing!  lol  And tile all the way to the ceiling?  Wow!  Interesting that I think you are the 2nd person that has mentioned beadboard in the bathroom.  Maybe this is something to consider in my more expensive properties.  :-)  I'd love to see pictures!  Thanks for contributing your list!  :-D

I WAS working on it, but then lost all my work (stupid computer) and am now in a contract for a house (from the MLS) and am looking at purchasing another I found on Craigslist. I don't need to do direct mail right now. I have all the properties I can handle at the moment. lol But, I can offer some help. Here's a great list of sources for finding motivated sellers.

https://www.biggerpockets.com/forums/93/topics/767...

A lot of folks purchase lists from List Source, but I figured I'd just make my own...which has now been lost.  :-P  A lot of people also like the Yellow Letters website.  If I recall, I think he's actually on BP.  Inconveniently, there are several similar sites and I can't recall which is his.  As for voice mails and such, it's usually recommended to answer if at all possible.  I had a couple of phone services that had been recommended, but I lost them too.  I found a podcast off BP that had some great phone dialogue on a podcast, but again, lost.  It's from this site, but for some reason, I can't connect to the site.  Hopefully it's just a temporarily glitch as I found a lot of good information on her site.  https://louisvillegalsrealestateblog.com/  

Sorry I can't be more help.  My DM plans all sort of fell apart, but now I don't need it...at least for the moment...  But good luck to you!  Hopefully someone more knowledgeable can help.  (Sorry to make you look bad, @Matthew Teifke. lol)

@Dave Van Horn, thanks for the explanations.  :-)  If you do this stuff regularly, you definitely deal in high end stuff.  Good for you!  

@Victoria C., I agree there is a lot of great stuff on this thread!  It's good that your places are constantly occupied.  Perhaps at some point you'll just refuse to renew a lease to update the place.  Then again, if it's occupied, maybe you're fine with the way things are.  :-)  I'm going to not renew on one of my duplexes to try and boost the rent after the renovation.j

@Pat L., HOLY COW!  That person on the counter is bendy!  lol  Maybe I'm just old.  lol  Thanks for the pics.  BEAUTIFUL floors, btw!  And congrats on the door!  :-)

@Nicole A., keep in mind, I don't actually own a Section 8 yet, but as I've been looking into it, the PM I spoke with also said the tenants tend to be long-term.  I wonder if this is a difference in locations or perhaps Section 8 is more long-term, but regular low income is more short-term.

Also, SUPPOSEDLY, there is a place on the HUD website where you can find out about how much your place would rent for, but I can't find it. A friend who works with low-income veterans, often finding them housing, said to look for it. Maybe someone else will have better luck.

Personally, I prefer areas that aren't as reliant on businesses and tourists for the economy.  There can be downturns and if one or two major businesses closes, that can devastate an area.  There are higher education schools here, but they don't seem to support the economy as much as I'd prefer.  But this is all just my opinion.  I love college towns.  I've got several rentals in my hometown, Auburn, AL.  War Eagle!  lol