All Forum Posts by: Kevin Connell

@Eric James

Hi, Eric. Not really. I have the local REI group (that I just joined, last week), and BiggerPockets. I have been reading voraciously - mostly Brandon Turner books - and was left with the impression that I probably needed a deal before I could interest a partner. Now, I need a partner to interest! I hope I don't have this backwards.

@Michael Ward

Uh Oh. At 6:20 this morning I mustered the nerve to make a $72,500 offer on this property. At 7:02 I had an email from the seller's agent telling me that she would be sending over a contract! Am I to assume that the offer was accepted?

Well, assuming that it was, it leaves me wondering what to do next. It has always been my intention to wholesale the property, because I don't have money for the down payment, and certainly don't have the money for rehab. The asking price was $135,000, the ARV should be about $169,000, and I have it for $72,500.

Do I sign the contract she is sending me, or do I have it looked over and edited/amended by a real estate attorney to make sure I have avenues of escape should I not be able to sell the contract?

@Michael Ward

Hi, Michael. Well, it's 6:20 a.m. and I just swallowed hard and sent over an offer of $72,500. It is my intention (out of necessity) to try and wholesale this, although it has been suggested that I am in over my head. I don't have the resources to buy and rehab this, but I really don't want to wait until I do. Now, I guess we'll see if the seller's agent laughs at me.

@Justin Hoggatt

Thanks, Justin. I appreciate the help!

@Rex Harris

Thank you, Rex, very much!

Should I use my own agent to pursue a deal I plan on wholesaling? I have already looked at the property once with the seller's agent, but I feel like I could use the assistance of my own agent, especially for comps. I just don't know if this complicates things when trying to wholesale the property.

I found a house on Zillow located in Siloam Springs, Arkansas, about twenty miles outside of the more heavily populated I49 Corridor of Northwest Arkansas. It is a Depression-Era, 1930 single family home with Art Deco design elements located about a block from the city's rejuvenated downtown area, where there are shops and restaurants, and across the street from The Siloam Springs Museum. You can look down the hill from the front of the house and see the downtown area. The neighborhood, called Alpine Heights, is all about the same age as the house and a mix of those that have been rehabbed and those that need it. The one I'm looking at is the latter.

One thing that intrigues me about it is that it has a detached garage that, at some point, was being renovated to become an apartment. The place is zoned for multi-family. There is no driveway; just a gravel alley to access the garage. Otherwise, parking is on the street. I'm not sure whether to have the garage be a garage, or an apartment.

I've never renovated anything so I don't know where to start. I feel certain that the 1930 house needs a home inspection. I also suppose I need a general contractor to put a number on the rehab. I also need to put an offer on the house. I just don't know in what order to do these things. I don't really want to spend money needlessly. 

The asking price is $135,000. The ARV is around $169,000, I think. It is tenant-occupied at $500/month. Fully rehabbed that would be more like $950 for the house and $700 for the garage apartment.

I would welcome suggestions.

@PashaMaleknia it's at Whole Hog Cafe, 1400 SE Walton Blvd, Bentonville, AR. Networking at 5:30, meeting at 6.

I have inquired about a couple of local Northwest Arkansas properties with two agents that I know. Both said, in a manner of speaking, that it's so hot, it's not! What they meant was that if you weren't on the inside track on properties coming onto the market, prepared to pay 20% above asking price and a cash buyer, you didn't stand a chance. They also both promised they weren't trying to discourage me.

The first property, a single-family home listed for $150,000 was being sold "As Is," and with approval of the court (I'm not sure what that means). It sounded promising, so I called my agent to make arrangements to see it the next day. He sent me a text telling me that there were 16 offers (in 2 days) and the highest was $165,000 cash. I backed away, as I was preparing to offer less than the $150,000. I was a little discouraged. I also got the talk about how hard it is to buy in this market right now.

The second property was unusual, to say the very lease: It is a cute house - and a body shop! I wasn't really serious, but I was curious why everything else sells before a sign can be put in the yard, while this one had had signs up for a month. I was thinking it might be a bargain, as far as houses with body shops go. It was $550,000. As an aside, I again got the talk about how hard it is to buy in this market right now.

Apparently, it's hard to buy in this market right now. I'm still betting that  it's not impossible, however. And, I feel a little more educated, and even a little more confident, having made the calls and asked the questions. I'm not just sitting on the sidelines.

I'm going to my first REI NWA meeting, in Bentonville, this evening, and I am looking forward to it. Perhaps I will meet some of you there.

Thank you @Ryan Blackstone and @Andrew Syrios!