All Forum Posts by: J Smith

Thanks for the insight Loyd. I actually ended up walking away. A lot of times even if a deal doesn't come out of the situation, I still think, " if I were to do it how would it work? What's best for the next person might not be whats best for me. I did close a deal last week so I'm still excited about that! Thanks a bunch

Here's the situation. I was contacted by a motivated seller who wanted to sell ASAP. Its owner occupied and she owes $95,000 on a $105,000 mortgage that she took out in 2013. The ARV of the property is $140,000 hard. She is current on payments and taxes. Her mortgage payments are 700/ month and homes that are 1500sqft rent 1200/ month.The property has $25,000 in repairs. (Roof quoted at $10,000 by a local roofing company and full cosmetic repairs quoted by a local contractor to be $15,000. Landscaping not included but that's fine.) She doesn't want anything and just wants to get out of her deal. I was thinking it might be a subject to deal and whole sale it down the road. I know absolutely nothing about subject to. I know the premise but what contracts/ documents are needed? What are the not so obvious risks of subject to? Can anyone recap their first subject too deal? Is it as strange and scary as it seems or am I over thinking it.

I'm a wholesaler that delivers QUALITY product and I am looking for serious single family cash buyers in the Palm Coast area. First come first serve. Know what you want, can show proof of funds, and is ready to move forward. Post or give me a call to discuss your criteria. I'll keep you posted of my inventory.
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I do have a realtor / friend that has access to the MLS and pulls comps for me. I'm looking at a about 3 houses a week from motivated sellers. Problem is my relationship with my realtor is supposed to be a give and take thing. People say that " call a realtor" they will happily pull comps for you. Well, I can see in the future she might want some kind of compensation for pulling comps and property analysis because it takes time out of her schedule to do this. Zillow, redfin, trulia usually give me a dirty look for properties sold but I like to confirm my knowledge with a realtor. Comps are everything. They make or break a deal, make you money, brake you, make you thrive in real estate or quit real estate. I don't want to think, but rather I know. Any suggestions?

@Thomas Anderson If you were interested in this property would you take into consideration the $50,000 property sold? Or would you think that something is going on there and go with the real ARV.

Are properties not sold at market value for whatever reason taken into consideration?  How do you make sense of comps sold at 100,000, 110,000, 120,000 and and then you see one at 50,000. Would you consider the one sold at 50,000 and outlier?

Its not supposed to. Its supposed to get the appraiser out to renegotiate the offer. More concerned about the house that sold for $50,000 3 blocks down. The this about pulling comps that have sold is that it doesn't take into account offers such as the way as the investor obtains a property. If the property has a market value of 100,000 and I was able to get it at 30,000  then on records it shows that this house sold for $30,000. Right? Doesn't that throw off comps?

I live in Palm Coast Florida and I got a call from a bandit sign from woman in preforeclosure. She got a loan for the house in 1999 for $63,000 and still owes $55,000. ( She has actually paid over $120,000 since her loan almost 20 years ago. High interest rate, penalties on top of penalties. ) There are no liens and no second mortgages. She really wants to get out of the house so I contacted her borrower for a pay off less than what she owes. The borrower said to write her an offer and email it in then they will send an appraiser. If the offer is less than the appraised value then she will notify the owner and the offer will have to be renegotiated. If the offer is higher than the appraised value then they will accept the offer and that will be the settlement to free her of her mortgage, get her out of foreclosure and she can pocket the extra cash. So I wrote the owner an offer of $10,000 which she accepted and the bank will most likely reject, send an appraiser out and we could renegotiate. I estimated the property has a ARV of $110,000 to $120,000 with about $30,000 repairs (conservative). 1,050 SF. The only thing is 3 houses down, a house that's a little bigger ( 1,200SF) and in better shape sold for $50,000 in 11/16/2016. The average house sold in this area at this size was $120,000. Most recent, 2 blocks back was $110,000. The average listing price for this size in this area is $130,000 for the same size same style. The house that sold for $50,000 might scare of buyers I am trying to wholesale this property to. What do you think? Please give some insight.