All Forum Posts by: Terry Sutherland

 I was going to say the same thing. Assessed value doesn't mean anything. Op also stated vakue was between 85k and 125k. That is a huge range and the first thing you should focus on as an investor is learn how to value properties.  

The house is not worth $120K.  Tax assessments are meaningless, and -- as in this case -- are not necessarily representative of the value of the house.

If the house is listed publicly and has dropped to $25K, then at most it is worth $25K.  What makes you think you could buy the place, relist it and sell it for more than $25K when the current owner is unable to do so?  If you can't then the value is whatever you purchased it for.

I would suggest asking the listing agent for a disclosure statement -- it's possible that there is something severely wrong that you are missing. Also, I would ask your agent to do a CMA -- it's possible that the house is just not worth nearly as much as you think it is.

Regardless, if other people (investors/homeowners) have looked at the house and haven't been willing to pay more than $25K, it's not worth more than $25K.

have you throughly checked this house, it reminds me of a story j. Scott told about a freshly remodeled house that had extreme termite damage. The remodel in that case was to cover up the extensive damage, needless to say he found it and didn't buy.

If you have done your due diligence then buy it with credit cards. Then refinance and pay the cards off maybe pull some equity out for your next deal. Maybe take out a personal loan or a combination of these things.

I appreciate everyone's take and advice.  I have went to the property but have not had an inspection.  Unfortunately I'm a newbie and have not even done my first deal as of yet. Therefore I don't have the funds or assets/credit to do as many have suggested with the credit cards to buy house. This is new to me but I will definitely keep that in mind for future. 

have you throughly checked this house, it reminds me of a story j. Scott told about a freshly remodeled house that had extreme termite damage. The remodel in that case was to cover up the extensive damage, needless to say he found it and didn't buy.

If you have done your due diligence then buy it with credit cards. Then refinance and pay the cards off maybe pull some equity out for your next deal. Maybe take out a personal loan or a combination of these things.

@Terry Sutherland   I love it.. here you are you can't buy it you know it will gone and its probably a smoking deal at 40k but you don't want to pay more than 5k ... cracks me up...

Try a different retail bank that you have a relationship with, not a credit union.  Also try a small local bank.  They might bite on it to get you to open other accounts.  Also, ask the listing agent (or your own agent to ask the listing agent) if there has been an appraisal done within the last 12 mos.  Take that appraisal and approach a few mortgage brokers that can do hard money.  You'll find someone that knows someone who wants to make a small loan if the deal is good.

It is important to note that a tax assessment is not a good gauge of value.  It's actually not a gauge of value at all.  As a matter of fact, tax assessments are rarely within 20% of the market value of a property and can be very outdated (high or low).  Never use assessed value for anything as a rule of thumb...

@Terry Sutherland  Occasionally realtors will price substantially under market to create a bidding war.. very common in our market

say a house is worth 650k.. they will start it at 575k and it will bid up to 700k, feeding frenzy of sorts.

but if this is for real.. I will buy it.. for 25k and sell it back to you for 40k if you can get a loan on it for that amount its still a great deal... and you can use it as a rental. as long as you can do it in 120 days or less..   hows that !  theres your funding

This needs further due diligence.  Until you sete the chain of title and confirm ownership I would not give anyone any deposits, earnest money, assignment fees etc.  Something is not adding up...

@Terry SutherlandI have heard of the loan being to low to justify the cost of making it. However you say what tax value is but what is market value? Also something smells wrong have you checked title?