All Forum Posts by: Ushi Hastie

Lance,

I do know a builder, I can ask what they think about it and the cost of building on raw land.  Thank you for your advice!  

Hi Everyone,

Going to take a look at a potential deal this afternoon that is unique to my experience and was looking for advice...

It's a vacant 3BD, 1.75BA, 1590 Sq Ft. rambler with a basement built in 1948. Seller moved out after a fire this past May. He owes $143K between a 1st ($122K) & 2nd ($21K) Mortgage. ARV comps are in the $220K - $240K range. He's 3 months behind on his first mortgage and current on his 2nd.

The numbers are tight and may not work for a wholesale deal depending on the extent of damage from the fire.  What makes this unique to me, is that the lot is 19,400 Sq Ft, which is twice as large as the comps besides one.  After looking at it on Google maps satellite view, it could easily be divided into two separate lots to build a 2nd house.  

My question is how much does lot size affect value?  Also, how could the possibility of dividing this lot affect the numbers?  Lastly, would it be best for me to refer this seller to an investor that deals with short sales? Seems like he would be a good candidate for a short sale due to the fire damage and seeing as he is behind on payments...

~ Thank you

Hi Everyone,

I'm thinking about offering to create and host custom squeeze pages or basic one page websites for fellow investors for an affordable monthly price at the bigger pockets marketplace. I could set you up with a custom designed banner and company logo if you don't already have one. I will host and maintain the site, all you would have to do is provide me with the written content. I know getting a website up is a frustrating obstacle for a lot of people. Just curious as to whether or not I should pursue putting this idea together. I would appreciate your input.

Thanks!

~ Ushi

Hi Nick B.

"So, where are those properties that are sold at 30% discount after repairs? "

Certainly not on the MLS, unless you have the resources to offer fabulous terms, such as being able to close with all cash, within 7 days and without many (or any) contingencies. Not to say that there are no deals to be had on the MLS, just because a seller is asking for market value on the MLS doesn't mean they won't take less with time and circumstance.

However, the MLS is probably not where you should be looking if you are not an experienced investor with the network/resources to dispose of properties mined there. The MLS & Craigslist is low hanging fruit with lots of competition.

You want to find people that either can not afford a realtor and/or are too ashamed to hire one because of the condition of the property. Guerrilla marketing, with direct mail, driving for dollars and bandit signs is where it is at if you want to find deals 30% below market value. In addition to that, those deals won't just fall out of the sky, into your lap, you must become a skilled negotiator.

Last, most wholesale deals are never listed on the MLS. They are deals with private sellers and the reason why you are not seeing the data to support that wholesaling is alive and well during your MLS browsing. The MLS's main purpose is to list homes retail price to retail owner occupants.

~ Ushi