All Forum Posts by: Pat Quaranto

Love this! I have such a great opportunity currently and I’m getting cold feet, it’s so hard taking that leap and putting it all together. This gives me a good little push

1 Vote

Orlando, Florida

I’m having a hard time with the comps. I have comps from a friend of mine, but it’s hard to compare when they’re not all exactly the same. After that it seems I’ll have to get bids from contractors?

0 Votes

Long Island, New York

@Mohammed Rahman great! Just messaged you. Thanks

0 Votes

Long Island, New York

I currently live in a house that is undervalued and has been neglected by the landlords. They plan to put it on the market within the next few months. I have decided this is not a property I would purchase through creative financing, but rather would like to wholesale it and be done with it.

I have comps pulled, and my next step is to get a contractor/estimator out here to give me a better idea of rehab costs. My head is all over the place and I would feel more comfortable doing this as a JV being that it will be my first.

In addition to the main question in the title of this post, my other question is this: What other information (besides the obvious ARV) do I need before I start looking for someone that would JV a deal with me? And where can I go to find someone that would be willing to JV?

Correct me if I’m wrong, but reaching out and saying “Hey, I know of this undervalued property and have comps” isn’t going to cut it. Lol. What other work do I have to put in on my end before looking for some sort of mentor to guide me through this while also making a little bit of profit for the both of us?

Thanks!

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Long Island, New York

@abel

@Abel Curiel Great, Appreciate it. Didn’t realize you were located in Queens!

Pleasure to meet you

1 Vote

Quote from @Bradley Buxton:

Quote from @Pat Quaranto:

Quote from @Bradley Buxton:

@Pat Quaranto

Why not house hack and get some low interest seller financing? Fix up the house and sell it and put the equity gains into a multifamily house.

The only way is to rent out room by room. Do people do that when house hacking. I can’t see many people wanting to do that, and I don’t know if I’d be comfortable with that either

Some people rent out by the room. It depends on how many rooms you want to rent out. If you have a 3 bedroom and you live in 1 maybe only have one roommate would cover enough of your payment that makes you comfortable. Keep in mind when you leave and buy your next property make sure the house can at least break even when you're not living there.

Then that would mean sharing living spaces. Not sure how comfortable I would be with that, especially people I don’t know. I guess I can find some friends or friends of friends but not sure with the condition of the home

0 Votes

Quote from @Abel Curiel:

Quote from @Pat Quaranto:

Quote from @Abel Curiel:

Quote from @Pat Quaranto:

My mother and I have been renting a home on Long Island for the past decade. The landlord, who lives in Indiana, recently notified us that she plans to sell the home and we have 90 days to find a new spot. We’ve been good tenants paying on time for the entirety of our stay here.

The property owners are brother & sister (and I believe a third sibling), but they’re never really on top of things, and no property management. I believe this may have been passed down to them prior and they don’t really do this often based on the condition of the home, and lack of communication.

The back yard is overgrown with weeds, the sidewalk has been damaged and rubble for years now. The roof has been replaced once but still leaks. There are water stains in the ceiling, the electric needs some help in the floor two bathroom, as well as the water pressure in the shower. The walls on the second floor show white chalking and also some sort of drip marks. And there are also leaks coming in at the corners of the ceiling from the water management.

It’s an old Levitt style home with asbestos underneath the siding, and just extremely outdated. Four beds, two baths. The only things that have been updated since living here has been the roof (but still leaks), the boiler (a reactive replacement after the kitchen flooded), as well as the floor kitchen cabinets (also after a major leak of which we mentioned multiple times) - which still kind of leaks. All this to say there are definitely some issues.

My question is this: Is there any opportunity to wholesale this? And if so, what steps would you take first, and how would I go about reaching out to the landlords. I’ve never had contact with them - it’s usually been my mother. The property definitely seems to be undervalued, I just don’t want to miss out on what could possibly be a great opportunity.

Any advice would be greatly appreciated. This would be my first deal. Thanks!

Hello @Pat Quaranto,

I would let the seller know that you and your mother are interested in purchasing the property.

Ask them if they are looking to sell the property in its current condition (they'll likely say yes given the background you shared).

Then, find out how much they'd like to sell the property for given its current condition and local area comparable sales.

As part of your research, check out sold properties on zillow, redfin, realtor, etc. If Levittown 4/2 cape style homes are trading at $699K fully renovated (for example) and the home needs ~ $200K in work, you'll know that any asking price above $500K would likely not be worth it.

If the seller's price is unrealistic at first, its OK because you still have leverage... the property won't hit the market until Fall AND you know more about this property than anyone else. Not to mention, dealing with you directly will save the owner 10's of thousands on broker fees.

If you are still interested in this deal after your research and thinking about the potential upside, then you can begin your 'pitch' by assuring the sellers that they'd save time AND money by dealing with you directly. All you'd need at that point would be RE attorneys for the contract and formalities.

To find recommendations on seller financing deal structure, I'd start right here on BiggerPockets by using the SEARCH feature and playing around with different keywords i.e. owner financing, seller finance deal structure, seller finance terms, owner finance terms, etc.

All the best!

Abel

Thanks for the info! Really appreciate it. I was able to get comps from a friend of mine who’s a real estate agent, but how do I go about finding exactly how much work needs to be done to the home in terms of a dollar amount? Do I get quotes?

Agreed with @Theresa Harris

Get a contractor recommendation (or multiple) from your friend and reach out to GCs yourself to have a couple of quotes and ideas for the renovation project.

During the walkthroughs, you can pick the contractor's brain regarding pricing on different material grades, efficient layout ideas, etc.

Appreciate all the advice and timely response. I think that’s my next step. I got all the comps in a seller’s report

Side note: Is there a way to respond to a reply without quoting everything? Lol

0 Votes

Quote from @Bradley Buxton:

@Pat Quaranto

Why not house hack and get some low interest seller financing? Fix up the house and sell it and put the equity gains into a multifamily house.

The only way is to rent out room by room. Do people do that when house hacking. I can’t see many people wanting to do that, and I don’t know if I’d be comfortable with that either

0 Votes

Quote from @Theresa Harris:

If you've been living there for 10 years, clearly you made it your home. Why not talk to them about buying it?

Talk to your realtor friend, they should know people who can give you that info-you may need to pay them for their time.

Feel like I’m not yet financially ready to seller finance and put all this money into fixing up a house that is probably better off being torn down and rebuilt. That’s what happening with most homes purchased in the area now. Then again, I guess no one is ever really “ready” to jump into real estate, but I would definitely feel more comfortable with reserves in place

0 Votes

Quote from @Ty Coutts:

Hey Pat,

When reaching out to the homeowner about wholesaling, it's best to start once you've got a good handle on the property's value and condition. You’ll want to have your numbers in order—this means understanding how much the property could sell for, what repairs might be needed, and what kind of offer makes sense for you.

When you do contact the homeowner, be upfront and personable. Let them know you're interested in buying the property and explain that you’re considering wholesaling it, which means you might find another buyer who will take over the deal. Assure them that this process can lead to a fast and smooth transaction without the usual market hassles.

Be honest about the property’s condition and why your offer might be lower than the asking price. Emphasize that your offer reflects the necessary repairs and the costs associated with fixing up the property. Make it clear that your goal is to help them sell quickly and easily, and that you’re here to make the process as straightforward as possible. Hope this helps! Feel free to reach out if you need help with any part of this process, or if you have any other questions!

Thank you! I appreciate the detailed response!

0 Votes

All Forum Posts by: Pat Quaranto

Pat Quaranto has started 11 posts and replied 46 times.

Post: New Investors - Take Action

Post: At what point is it appropriate to start looking for help to JV a wholesale deal?

Post: At what point is it appropriate to start looking for help to JV a wholesale deal?

Post: At what point is it appropriate to start looking for help to JV a wholesale deal?

Post: Home we’ve been renting for past 10 years is being sold! Is there opportunity?

Post: Home we’ve been renting for past 10 years is being sold! Is there opportunity?

Post: Home we’ve been renting for past 10 years is being sold! Is there opportunity?

Post: Home we’ve been renting for past 10 years is being sold! Is there opportunity?

Post: Home we’ve been renting for past 10 years is being sold! Is there opportunity?

Post: At what point do I reach out to the landlord regarding wholesaling?