All Forum Posts by: Michael Woodward

@KENDRA J.  Go to the "Resources" area here on BP and look for the calculators.  Run the numbers through the calculators to see how both options look.  You can use those numbers coupled with your personal preference to make a decision. 

@James S.  I agree with Jamie.... it depends on the property.  I've seen houses that were only 10 years old that were built very poorly and in serious need of repairs and others that were more than 60 years old in very good condition.  I know that some people use the age of the house as a weed-out tool but you can't make a determination by age alone.  Run the comparable sale numbers and then go see it.  It's the only way to know for sure.

@Braden Hobbs  It depends on your strategy (wholesaling, flipping, buy/hold, etc).  What are your plans?

@Tony White  Lowe's, Home Depot, or your local paint supplier should be able to help you figure it out.  They might use an estimator software or if they offer painting services, they might send someone over to do the quote.  The only way to get really accurate numbers though is to get quotes from at least three painters.  Quotes can vary tremendously depending on the quality of the painter and how busy they are.  It can be a hassle but there's really no other way. 

@Jesse Stanley

There are MANY pitfalls along the path to a successful real estate business and unfortunately you stepped in one right off the bat.  It's always best to ask for advice here on BiggerPockets on any deal that has some special circumstance like this one (occupant/renter) BEFORE you pull the trigger.  Mike's right about your options.  Unfortunately, the renter doesn't have to cooperate with you at all.  This is likely a bad situation for him or her so I would not expect them to want to help.  

One strategy that you might have heard kicked around B.P. is "cash for keys".   What you would do is make contact with the renter (in person if necessary... but be careful how you do it because you can be charged with trespassing) and offer to pay them to leave.  I've heard of people paying up to $5000 to get someone to move out.  If this is a wholesale deal that you hope to simultaneous close and not put any of your own money in, you're in a tough spot.  I would strongly advise you to stick to really simple, low-risk deals until you've got some more experience.

I hope it works out for you.

@Robert Evans  Wow!  Sorry to hear that it's dragging on so long.  The reason I found your post was because I was preparing to go to an auction later today (occupied house) and was looking for conversations about courthouse sales with occupied houses.  I haven't bought anything at the courthouse yet so I'm approaching the idea with extreme caution.  My personal rule (for now) is to never buy a house at auction that's occupied without first talking to the occupant.  That can be dangerous so I would only do it if the deal looked REALLY good and I REALLY wanted the house. This appears to be the only way to know if the owner is willing to accept cash for keys or if they're gearing up for a fight.  

I appreciate you sharing your situation.  It's solidified my resolve to stick to the cautious approach.  I hope your project works out for you!

@Robert Evans   I'm curious how this worked out for you.  Would you mind to update what happened and where you are in the process now?

@Vince Reina  As an investor, the things I've needed most from my agents are data (so I can research the market), real estate value information based on the agent's personal experience (houses they've sold), and daily searches for good investments.   The more information the better.  

Regarding your concern about helping your investor to see things realistically.... you will need to give him enough solds data to show him what the realistic value is.  Nailing down a properties "value" is a lot easier said than done though because there are many parameters that will define it.  If you expect it to sell within a week of being listed, you'll have to price it at a certain level (below market value).  If you're ok with letting it sit for a few weeks or months, you can price it higher.  It's a subjective thing that's not easily defined. Your best option is to become a values expert and inundate your client with data.  Make it clear to him where you stand and then let him make his own decisions.  

Good luck!

Daron, I'm also an agent/investor in TN. You'll need to be careful how you do that. Getting paid to "wholesale" is the sticky part. If you're running it through your brokerage, you're probably ok but if you do it on the side use caution.  You should run it by your broker to make sure they sign off on it. If you get in trouble it will automatically pull them into it so  it's better to get them on board first.

Anyone?? .........  Bueller?.......... Bueller?.........