All Forum Posts by: Ray Eason

 Jordan,

What do you use for comps?

With that in mind, I have another seller I have connected with.

He's wanting $175k (obo). He own's the home(s) free and clear.

There is a front house and a back house over a garage.

Zillows shows a listing of $133,934

Last sold in 2008 for $188k. Which is probably why he is wanting $175k.

I am beginning to understand that if a person will not come down in price, then they are not that motivated and move on.

But I would love to hear what you think and have to say.

Andrew, I completely agree with  you. 

Yes, that is from Zestimate. I also went to a couple other sites that had the same information.

Whats interesting is, I checked this a few days ago and it was a few thousand dollars less.

 Ned,

I completely agree with you which is why I am on BP right now asking questions before I simply "forget about it".

To me, this is a learning process as much as it is a "deal".

And yes, it's possible that I am undervaluing the property which is why I am asking some of you what YOU think as an experience RE Pro. Just trying to get my experience under my belt :)

So with that in mind, I am prepared to make her an offer of FMV - Repairs - Costs * 75% which would be about $45,893.28 (a little more than half her asking price).

I would take a small spread on this personally (just for experience) while giving the potential investor wiggle room as well.

Input is appreciated.

Thanks for the quick reply Joe.

No I haven't shown her comps in the area. After talking to her and seeing the zestimate, I wanted to get some other peoples opinions and feedback on this. 

However, I believe she knows that the asking price is high. She kept reiterating she bought the property for the vision and I have to see the vision for the property... 

So after seeing the zoning for 3 houses on the lot, I thought I would get some input on this.

And I am making her an all cash offer. We discussed this on the phone.

By the way, what's a good site for comps? I was using findcompsnow.com but it has changed and the information doesn't seem to be what I am looking for.

Hello and good afternoon everyone.

I'm in California and have a seller who wants a bit more for their property than it's seemingly worth.

The proper is worth $67,512 the seller wants $90,000, and has a loan of $20,000 on the home. The lot size is 5,967 sq ft, it's an older home built in 1937 and days on market is about 71 days.

It is currently listed with a Real Estate agent but the listing comes to an end the beginning of next month.

The only benefit I can see to offset her asking price is that the property is zoned for building 3 properties on the lot.

I am looking to wholesale/quickturn the property to my list of buyers.

What are some strategies I could use to either get the seller to come down on her price (she has already come down from $95.000 to $90.000 when I asked her) and how might other investors or cash buyers look at this deal?

I look forward to your comments and feedback.

Ray

Wow Aaron! Wow! You are hardcore and either good for me or very bad! lol.

I love your approach even though it goes against some of the preliminary things I have been told by a couple of gurus (indirectly, that is, through books, videos, etc).

So are you saying as long as my Assignment Contract exists, is being used, agreed upon by both parties (well three including the buyer), and I am using Sale/Purchase agreement (when necessary), that I should fine and good to go?

Note: I am starting in the Wholesale/Assignment of Contract business as an Investor (in California). I will not be rehabbing or holding until I get a few deals under my belt, saved up some cash and/or found some good Cash Buyers for my deals.

 Interesting perspective there Aaron. lol.

I agree and understand what you are saying.

From a New Investor perspective I just want to make sure I am learning what I need to learn instead of hearing what I want to hear.

That's a problem for some entrepreneurial types.

I did listen to the podcast and it was a vault of good and humorous information. 

So my question is: How do I get my contracts reviewed if the Pro's don't understand what I am doing or agree with how I am trying to do it? 

I have my contracts but need the Assignment of Contract and Sale Agreement reviewed for use in California.

This Real Estate Lawyer didn't say he wouldn't review them, he just wanted me to review the websites with the California Real Estate codes on it because he said I would be operating as a broker without a license. Granted, I now realize I am not an RE Agent so that does not apply to me.

Should I simply tell him "Well I don't... but I still want you to review and correct my docs for California..."?

 I've used them for other matters so I figured I'd give them a try.

But I've also been reading, learning and discovering, now all, so called, professionals are as they seem.

Are they just not proficient in this realm Wayne?

Russell,

You'd think these Real Estate Attorney's would mention this to you but... who knows.

I even asked this guy if he worked with Investors and he said Yes. He's been in real estate law for over 14yrs. Some of these guys are very frustrating.

Where do I find the podcast #37?

 Matt,

Thanks for your response.

Shortly after I posted this this message, Biggerpockets had some web issues. I'm glad its back up :)

So where do I post a message to Matt using the @aaron mazzillo? I'm pretty new to BP.

As for this Real Estate Attorney, I have no idea. He referred me to some sites and gave me some California real estate codes to look up and read. Then told me to call him back after I read up on it. He also said "If anyone could do real estate without a license, why would we need brokers?" 

The impression I got from him is that he was pressing the issue that I can not SELL Property with out a license. However, he did say I could use Assignment Contracts with a Purchase and Sell Agreement to sell my contract to another seller or investor.

So I am not sure if he was trying to scare me because I was using the wrong terminology or not.