All Forum Posts by: Stephen Hare

My past work experience is construction so I would do all the work myself counting only for materials. It doesn't really need a lot of work on it. Mostly cosmetic.

My ARV was rather a rough estimate based on comparables of similar homes in the area.

My plan was to wholesale it based on the discount I'm getting and the fact that I have no cash to finance a property. If I could find a way to finance it and afford my current rent payment I would fix it up and rent it out. But again, I need to build myself up some cash and work on repairing my credit.

I'll consider any financing ideas but atm going towards the wholesale. I'll have 30 days to find a buyer or find financing.

And ya this is all very exiting and scary at the same time. I know i'm probably not being thorough enough in my guesstimates. But I need to be out there doing it to learn it.

Hello,

Just wanted to write to convey my excitement. As some of you already know I just started out my REI career. I've looked at a few houses and talked to some owners but today I made my first official offer and it was accepted!!!!

It may not end up being a great deal but on paper it look's like a winner and a worth investment for someone who wants to buy this contract. Going to sign the purchase agreement tomorrow so will have contract available very soon!!

Financial Details:
ARV ~ $37-40,000
Assessed in 2008 ~ $29,600
Repair Cost ~ $4,000
Desired Profit ~ $3,000
My Offer was for ~ $16,500

It's a small 2 Bdr with a detached garage. Lot of features already updated such as heating/cooling. Not in need of real major repairs besides the garage roof and siding on both buildings. I estimated garage repairs for demo and putting up an aluminum shed or carport. Electrical box needs updating and needs some wiring. I may have under estimated the repair cost a little but I think I left myself room.

Would really appreciate some feedback on this. My plan is to enter into contract with contingencies that allow me to back out with $10 earnest money down. Trying for closing in 30 days.

If I can't move the house to an investor I've really lost nothing but gained quite a bit of knowledge and experience and that's a lot.

Steve

Average annual property taxes ~ 180

I'm not looking to make a big gain off this. If I can pull 5k out of it I would be more than happy. This would be my first investment and the knowledge of the process alone is going to be priceless.

Thanx for the input^^

Steve

So my fmv could be well above the neighbors after repairs? Maybe I didn't count on a high enough fmv?

The neighbors house is about the same size and in about the same rough condition and has FMV of 45k.

Could you compile a quck formula to figure out a properties actual value? I used the assessed value, upgrade value, value of comparables in area etc. to come up with my # of 40-45k

I realize i'm gonna want my numbers to be as accurate as possible to formulate my offer.

Rent around here is fairly low on average. I'd say rent would be 350-400

Property (965 sq. ft.) ARV ~ $40-45,000 (based on similar homes in area)
Assessed @ ~ $29,600
Asking ~ $19,000
Rehab ~ $3500 (rough estimate)
Small 2 Bdr on an acre out in the country.
Owner owes nothing on it.

What do you think my best options are on this one? I could rehab it and try to rent it, contract and assign to a rehabber, or rehab/flip myself.

Some thoughts/suggestions would be helpful thanks.

Stephen Hare
REI Newbie
NW Tennessee

This is what I found out:

~ 2005 Owner Financing - Deed of Trust to my friend and his wife. His wife Quit Claimed her part to him 4 days later.

~ So friend has Deed of Trust and Original owners hold the note.

I was planning on moving into the house for a few years and sitting on it as I can't afford to pay two rent payments quite yet. While i'm appreciating that house i'm gonna be working on flipping and or assigning to build up some cash. Does a Deed of Trust hold equity??

Talking to county register at the moment trying to get some information on the deed etc.