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All Forum Posts by: Mike Jones

Mike Jones has started 5 posts and replied 20 times.

Originally posted by @Kirk Lewis:

What do you expect it to sell for after repairs? Can't evaluate a deal properly without that number.

 I plan to live in it. I'm not an investor. 

Originally posted by @Theresa Harris:

@Mike Jones  All that matters is if the numbers make sense.  Do you have the money to do the renos and is the house worth it?  Are you planning on renting it or flipping it?  

You knew about the HVAC when you saw it along with the other list from the seller, so the only possible surprise is the plumbing and that may or may not be an issue.  Get a plumber in to look at the plumbing and go from there.

Yes. I said that. I am speaking on the inspection results. As I said I got an estimate of $7000 from a plumber. 

Originally posted by @Charles Goetz:

@Mike Jones  Why do you need to replace the plumbing system? The polyethylene (PEX) is very common. It's used in most new construction. PolyButylene (BP) is the stuff you don't want. The spot on the ceiling may just be a small repair. I would call around and get some other estimates on the HVAC. 

On the other hand, not knowing about the house, is it on land or in a park? While mobile homes are easy to work on, their value goes down real quick. I personally wouldn't be afraid of buying a mobile home, but be sure the deal is good. I would not spend that much for one in a park, but that's just me. Just because you've been looking a long time, don't but a deal you don't feel good about just to get something. Don't get backed into a corner by the seller telling you he has more and better offers. 

 

Sorry. PolyButylene is what I meant. The inspection report says it's a national recall and needs to be replaced. The mobile home on it's on land. I just feel like i'm being charged too much. I see properties listed in the same area for the same price or a little more that don't need nearly the amount of work or none at all.  The properties that I see needing this amount of work generally sell for 15-20k. There are 6 examples in the same neighborhood from the last 6 months. I made the 25k offer based on what I saw and what the seller told me, but what the inspection revealed is not worth 25k to me. Not to mention a listing for this property from 2015 is still available online. It sold for 23k. and it did not have any of its current issues. At least cosmetically. I'm paying more for less. 

I now have a mobile home under contract for 25k. I knew the house was a fixer upper as it is listed as "as-is". The seller told me it needed a new HVAC and drywall in parts of the house. As well as cabinets, door fixtures, and cosmetic work. All of which I could see when I looked at it. I've since gotten an inspection done and some things came up that he didn't mention. The report says that it has polyethylene plumbing and organic growth on some spots on the kitchen ceiling, but they don't show elevated levels of moisture. I was quoted $9000 for a new hvac system and $7000 to replace the plumbing. That's already 16k in repairs right there. Not even counting appliances, carpet and drywall. I don't even know where to start with the roof. There maybe issues there too. I asked the seller would he be willing to bend on the price based on the other issues found in the inspection but he says he has a back up offer over what I offered in writing and 4 other people waiting to make offers. However they haven't gotten an inspection done as I have! I have 2 more days left in my due diligence period to decide rather or not I should back out or push the issue on renegotiating the price? I'm leery of doing that because I don't know if the seller can back out of the contract or not. I've been looking for a house for so long that I don't want to mess this up, but I don't know if i'm getting a good deal or if i'm being stiffed. I don't feel good about it. The seller is not using a listing agent BTW. 

I got advice from another thread to look for this type of loan based on my situation. 

The property I want to buy cost $38k. I have 30k cash.  I would need an 8k loan, which I could payback in 6 months.

*My credit score is a 502, only because I have no credit history at all.  

*I've been working for 6 years at the same company. 

*I have no expenses other than rent, which I wouldn't have if I get a loan to buy the house. 


I could easily payback the loan, but it's difficult to save it up now, because of the rent and utilities I have to pay. It took me six years to save up the 30k. 8k would take about 2 more years with me still having to pay rent.

Originally posted by @Account Closed:

Hi Mike-

I think you are finding some snobs over there.  I think you do not necessarily need a buyer's agent because that can confine you to one area and one agent.  But heck if you have CASH??? And you TELL THEM you have cash?  They should be running up to meet you.  It sounds like you didn't tell them you had cash. 

Now.  Since you have cash, I am going to ask you how much you know about financing.  Did you know a loan broker can get you a property for (give or take) $100,000?  That implies you put down $25000.  That's a pretty solid down payment. You'd have a loan of $75000,  At 4% interest your payment would be (give or take) about $350 for principal and interest.  Most people do not have the cash you are in charge of.  

Young man, take yourself down to a bank and get a preapproval IN YOUR HAND. Tell the agents you have a preapproval IN YOUR HAND.  If your credit is low, then get a preapproval from a loan broker instead of a bank.  Real estate agents will then fall down in the street begging you to come to them.  

All you need is to know this is how it's done.  Let me know if I can help.  You are going to do great.

 

I checked my credit today. It's a 502. I'm not understanding why as i don't have any credit history at all. I'm still young. The only thing I see on there is a $50 medical bill from 3 years ago that I didn't even know about. I don't know anything about loans or financing. I've just been focusing on saving and budgeting. The properties that I want right now. (really for my mom) are listed at 38k and 44k. It's just really frustrating to have been sacrificing and saving for 5 years and still to be so far away. I know that lenders don't want to do 44k mortgage loans, but i'll take any kind of loan. I just need to get in a home. Paying off the remaining amount will be easy, considering what i would usually pay in rent will be going towards the loan, as well as what i would usually save. I have over 5 years of employment history at the same company, different positions because i've gotten promotions. Any idea how I could get a 8-14 k loan? or get someone to do a mortgage loan for that low?

Originally posted by @Account Closed:

Hi Mike-

I think you are finding some snobs over there.  I think you do not necessarily need a buyer's agent because that can confine you to one area and one agent.  But heck if you have CASH??? And you TELL THEM you have cash?  They should be running up to meet you.  It sounds like you didn't tell them you had cash. 

Now.  Since you have cash, I am going to ask you how much you know about financing.  Did you know a loan broker can get you a property for (give or take) $100,000?  That implies you put down $25000.  That's a pretty solid down payment. You'd have a loan of $75000,  At 4% interest your payment would be (give or take) about $350 for principal and interest.  Most people do not have the cash you are in charge of.  

Young man, take yourself down to a bank and get a preapproval IN YOUR HAND. Tell the agents you have a preapproval IN YOUR HAND.  If your credit is low, then get a preapproval from a loan broker instead of a bank.  Real estate agents will then fall down in the street begging you to come to them.  

All you need is to know this is how it's done.  Let me know if I can help.  You are going to do great.

I checked my credit today. It's a 502. I'm not understanding why as i don't have any credit history at all. I'm still young. The only thing I see  on there is a $50 medical bill from 3 years ago that I didn't even know about.  I don't know anything about loans or financing. I've just been focusing on saving and budgeting. The properties that I want right now. (really for my mom) are listed at 38k and 44k.  It's just really frustrating to have been sacrificing and saving for 5 years and still to be so far away. I know that lenders don't want to do 44k mortgage loans, but i'll take any kind of loan. I just need to get in a home. Paying off the remaining amount will be easy, considering what i would usually pay in rent will be going towards the loan, as well as what i would usually save.  I have over 5 years of employment history at the same company, different positions because i've gotten promotions. Any idea how I could get a 8-14 k loan? or get someone to do a mortgage loan for that low?

Originally posted by @Robert Ombres:

I'd recommend connecting with a local real estate agent to represent you. The seller is going to cover their commission, almost always- unless it's a For Sale By Owner, then that will require negotiating.

Other options of "finding" a property will likely require more money out of your own pocket. Anyone who says "I can help" without signing a buyer agency agreement, I'd get extreme clarity on what their fees are going to be and what exactly they are going to do to "help" you, as they aren't legally representing you.

*One problem you may find here is a buyer agent willing to spend time showing properties in this price range. If they're receiving a 3% commission, that's $900 on a $30k property. You may HAVE to go directly to the listing agent.  Now, that's not entirely a bad thing, though it is less ideal.  In that case, the listing agent will be representing the seller. You could ask that they sign a dual agency agreement- designated or not. This will either allow that agent to have another broker in their firm represent you through the transaction- or it will make the listing agent represent both of you by "stepping back" and acting more as a referee than a coach. They still must reveal all legally required information/disclosures. They can't advise you what to do with that information or what information to seek further however.

You'll want a home inspection and that will reveal other items that you may want to spend more money to investigate.

Zillow information is often incorrect. When you see "Sold" properties on Zillow at lower prices, you may not be getting the full picture. Also, check the sold date.

The real estate market isn't "shady." Homes often get listed at "Let's just try" prices and eventually sell for "market value."

By your post, I understand you have $30k saved? Would you qualify for a loan so that you can expand your options beyond what is listed for $30k?

I do wish you luck. Finding something in that price range would be nearly impossible in my local market. At the time of this post, there are only 45 properties on the Carolina MLS (stretching from Asheville to Fayetteville) priced $0-30,000. There are only 171 up to $50,000. There are only 5 listed within my service area. The only one I would guess is inhabitable is Under Contract.

Please do refer back and ask us questions if you have any about the buying process or possible options that might expand your search.

They aren't on the MLS, because they get sold quickly. As I said to the person below. I know of 4 that have sold this past alone. I see you're from Asheville. Property values are different there. I have to disagree with you, and say the real estate business is SHADY, because I watch there properties get sold at or below the price I'm offering. It's clear that these listing agents have bias and are selling these properties to specific people that they have business relationships with. That's the only thing that makes sense. They are completely disinterested in giving information about the properties won't take offers, but sell them for less than what I said I would offer. This isn't an isolated issue either.

Originally posted by @Alexander Felice:

What are you buying in Hope mills for 30k?!?!? 

sounds like you have an agent problem, communication should be WAY tighter. Find someone who is more aligned with your goals and style. 

Also remember that at that price point no brokers are making any money. Their financial incentive is low, so do your best to make their life as easy as possible. 

As I stated earlier I'm looking for a double-wide affixed to some land.  I'm not sure why you seem so in disbelief at the 30k price. If you look at the recently sold listing , which goes back years on any of the realtor sites. Realtor.com/Zillow.com etc. 30k is the median range. They usually sell for 20-40k. of course they are going to need some work, but still livable. There have been about 4 sold this week alone. 

I'm trying to buy a place, but it seems like the real estate market is shady. All of the homes I've been interested in have sold for under or slightly above what I have, even though they were listed for much more originally. I only recently discovered this when I looked at the Zillow "sold" listings. Why is it that when I call the listing agents they always seem annoyed and don't want to 1.Answer the phone 2. Give me information about properties 3. Take an offer?  Then a week later I see the property sold for what i would have offered or even less. It's ridiculous.

I'm looking for something in the Hoke county area. Raeford, Aberdeen, Hope Mills, Parkton, St Pauls. I know anything at this price point is going to need some work, but not too much as I see properties in good living condition like (doublewide/land) being sold for this price every week. 

I made a post a year and a half ago about 17k and people told me I needed to save up a little more, now I'm at 30k and still I can't get anything.