All Forum Posts by: Antonio Bodley

I found another seller interested in selling their home, but their home is in bad condition and is going to be demolished. Should I pass or make a deal?

Not enough information - are you a builder, what is your experience? If the home is to be demolished I would say pass.

No I am not a builder. I was going to wholesale flip to a rehabber investor if that was possible.

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I found another seller interested in selling their home, but their home is in bad condition and is going to be demolished. Should I pass or make a deal?

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Quote from @William Whitley:

Good morning, Antonio,

I think you answered your own question with that last statement. They can’t be that motivated if they are asking for a sale price that is above value. Furthermore, it’s usually a good idea to pass on a bad deal, rather than having buyer’s remorse. On top of that, you don’t seem to want to inherit a tenant. Nothing in your comments seen to indicate you should make a deal, but everything in your comments seem to suggest walking away from this one. It’s best to let bad deals go, and be on the lookout for ones that make sense.

All the best!

Bill

I mean his price is high, but I have not reached out to him and negotiated a lower price he may or may not accept. Nahh I wasn't expecting the house to have a tenant because I was targeting vacant homes only like completely vacant.

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I have a motivated seller that wants to sell. The thing is the house is currently rented. My exit strategy was initially to wholesale to another investor or rehabber if it needs repairs. The home is located in a very poor rundown neighborhood. Do I make a deal or let it go? Seller asking price is way high than what the house is worth.

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Will tariffs have any effect on rehabbers? Will material be more expensive for contractors?

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Quote from @Dennis McNeely:

In a sandwich lease option, the investor exercises their option with the property owner to purchase the property when the tenant-buyer indicates they're ready to exercise their option and purchases the property.

Oversimplifying it just a bit, the investor profits from:
- a non-refundable option paid by the tenant-buyer which gives them the right to purchase the property within their option period
- the spread between the rent paid by the investor to the property owner and the rent paid to the investor by the tenant-buyer over the life of the option
- the spread between the price ultimately paid by the investor when they exercise their option with the owner and the price ultimately paid by the tenant-buyer when they exercise their option with the investor

Clear as mud?

I have never done lease options before, but I do want to try the sandwich lease option strategy.

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How does the middleman (investor) exit out of the sandwich lease option once the investor finds an end buyer to close on the original purchase price between investor and seller? Would the investor have to use an assignment contract between him and new end buyer to collect the mark-up fee aka assignment fee at closing? I'm just curious because the original seller thinks the middleman is going to close on the property after the lease is up between seller and middleman.

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Quote from @Bryan Montross:

If you are going to make the offer without ever seeing the inside, go with public records and run your comps from that. Also, since you won't know the actual condition of the property, you'll need to account for that in your offer. It will be a really low offer compared to what he is looking for.

Another option is to price it the way the seller is telling you, with contingencies giving you the chance to back out if the house is not the way it was told to you. Then if it is only 2 bed instead of 3 you can renegotiate price or back out. Once it is under contract you need to be able to see the inside of the house. If he doesn't let you in, I would back out and not take the deal. You'll also want to know what the terms of the lease you are inheriting is and decide if you are OK with that.

And sometimes, it is good to just walk away and put your effort into another deal that might make you as much money for less effort.

I have been looking for buy and hold investors who rent homes in the area to see if they are interested. I reached out to my list of buyers, but I have not heard back from them. I have been searching buyers first before putting the property under contract. He doesn't have an asking price for the house. He wanted me to give him whatever offer and see if he takes it or not.

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Quote from @Theresa Harris:

Quote from @Antonio Bodley:

Quote from @Theresa Harris:

I'd also check if renovations were done and if so were permits pulled? Did you walk the house to see why the records are different (ie did they finish a basement and add a bathroom, den and bedroom)?

This is what I got from the seller. Remodeling: No remodeling has been done recently but is still in good condition and almost like new: a new 50-year metal roof; new central air and heat; new cabinets, sinks, etc., in the kitchen and baths; new flooring; a new driveway.

I guess it depends what they mean by 'recently' and it may not have been them. Could have been previous owners. Ask the listing agent why the city's records are so different.

The house is not listed. There is no listing agent. That "recently" information was given to me by my VA after they cold called the seller. And the house does not have a basement. I rode by to see the outside of the house myself. Tenants are living there.

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Quote from @Chris Seveney:

@Antonio Bodley

Have you gone inside this property? I think it’s pretty easy to tell if it’s a 2 or 3 bedroom

Also how are you making an offer if you have never been in the property or even able to run comps?

My VA cold called the owner and provided me with the information. I called the seller myself to get accurate information. The house is tenant occupied, so I have not been inside to see the house. I am only going by the information the seller gave me.

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All Forum Posts by: Antonio Bodley

Antonio Bodley has started 124 posts and replied 507 times.

Post: Found another seller lead

Post: Found another seller lead

Post: House is being rented

Post: House is being rented

Post: Tarrifs and rehabs

Post: The middleman in the sandwich lease options

Post: The middleman in the sandwich lease options

Post: How am I supposed to make an offer?

Post: How am I supposed to make an offer?

Post: How am I supposed to make an offer?