MichaelC 160 Report post Posted July 9, 2007 Love this post... I know it hasn't been long but do you have any updates?? I had an appraiser come out on Thursday and I got lots of pictures and some good news! I just spoke to him again as I was out of town for the weekend. He said that on the conservative side $75k equity and on the optimistic side $125k right now without even lifting a paint brush. I am starting to have second thoughts about passing this off to someone else. I might just take this one on myself, don't know yet. I will post again with updates as they are relevant. AlanNot a bad dilemma to have to deal with, Alan. Share this post Link to post Share on other sites
abohlig 0 Report post Posted July 9, 2007 Not a bad dilemma to have to deal with, Alan. Indeed, you are correct sir! I love it and wish I had this problem a lot more often. Alan Share this post Link to post Share on other sites
abohlig 0 Report post Posted September 20, 2007 Time for an update on this one: I did close on this place on July 31st. I found a way to finance it without taking out a mortgage and without going the hard money route as that just seemed crazy expensive. In the month and a half since I have gutted the place and started with some of the repairs. This place has a ton of work to do, probably at least 100k and maybe as much as 125k. The entire repair process is going to take me a minimum of 3 more months and unfortunately that puts us right at Christmas time and of course the slow time of the year for selling. The good:-Everyone seems to agree that I got a GREAT DEAL on this place. -I have a standing offer from another investor that has a builder in his pocket. The Bad:-The house is a complete mess and is going to take a minimum of 3 or 4 months of work to fix up + a minimum of $100k-The standing offer would still make me a nice profit, but not as much as I had hoped. My options:a.) Continue the repair myself. The pros of this is it would maximize my profits. The cons are that I am not an expert at this and I will likely experience overruns on both my time and money estimates. I also would not have a defined 100% exit price. Another negative is that I am currently sort of in a cash flow crunch that would only be made worse by following this course of action. b.) Sell to the above mentioned or another investor. c.) Put it on the MLS at a price that would likely sell quickly At this point I have not decided which path to choose. I am leaning in the direction of b.) or c), but have not completely ruled out a) I need to get back to my investor friend and probably counter him a bit. If I can get his offer up to anything close to what I think I would be able to net out of a MLS sale I will likely just take his offer. I will post again when more progress is made. Alan Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 20, 2007 Thanks for the update, Alan. I was wondering if you ever moved on this property.I found a way to finance it without taking out a mortgage and without going the hard money route as that just seemed crazy expensive.Intriguing. Care to expand on that?As for your exit strategies, none are bad since you made your profit when you bought at such a good price. Not being the handyman type myself, I would opt for getting rid of this baby sooner, rather than later. The negatives you already noted are reason enough not to be holding this property into mid-winter. I mean, just how easy is it to move a house in Minneapolis in January? Share this post Link to post Share on other sites
abohlig 0 Report post Posted September 20, 2007 Thanks for the update, Alan. I was wondering if you ever moved on this property.I found a way to finance it without taking out a mortgage and without going the hard money route as that just seemed crazy expensive.Intriguing. Care to expand on that?I found a local investor that was willing to loan me 100% of the purchase price at basically a sub prime rate with nothing due until sale. Pretty good, huh? As for your exit strategies...................................... I mean, just how easy is it to move a house in Minneapolis in January? lol. Yea, 20 below with 2 feet of snow on the ground and in the middle of the school year is not exactly your premier house selling time of yr. It does happen though. Alan Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 20, 2007 . . .I found a local investor that was willing to loan me 100% of the purchase price at basically a sub prime rate with nothing due until sale. Pretty good, huh?That financing package you "found" is more than pretty good! I suppose a DVD and seminar series on creative financing will follow? Share this post Link to post Share on other sites
abohlig 0 Report post Posted September 20, 2007 That financing package you "found" is more than pretty good! I suppose a DVD and seminar series on creative financing will follow? lol No, you are not going to see that from me. I do think that I am pretty decent at moving on a deal when I spot one though. It is surprising what you can come up with when you start turning over rocks. If you turn over enough of them you start to find some diamonds in amongst the granite pebbles. Alan Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 21, 2007 That financing package you "found" is more than pretty good! I suppose a DVD and seminar series on creative financing will follow? lol No, you are not going to see that from me. I do think that I am pretty decent at moving on a deal when I spot one though. It is surprising what you can come up with when you start turning over rocks. If you turn over enough of them you start to find some diamonds in amongst the granite pebbles. AlanBe careful. You'll also find some creepy, crawly, slimy things under those rocks, too. Share this post Link to post Share on other sites
abohlig 0 Report post Posted September 21, 2007 Be careful. You'll also find some creepy, crawly, slimy things under those rocks, too. yea, I have found a few of those too! MC, just out of curiosity I have a question for you. Say I do decide to sell to another investor and say we both agree that there is likely about $125k total profit to be made, what would you say is fair? How much for me, how much for the investor/rehabber? Alan Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 21, 2007 Alan, tough question to answer. You know your market and this property better than I. How much is it worth to you to get this one off your back? How badly does the investor want it? What's fair is what both parties can agree to. Share this post Link to post Share on other sites
abohlig 0 Report post Posted September 21, 2007 Alan, tough question to answer. You know your market and this property better than I. How much is it worth to you to get this one off your back? How badly does the investor want it? What's fair is what both parties can agree to. yea, unfortunately that is what I thought you would say. No big deal though. I think I am going to let it go and get on with my life. Alan Share this post Link to post Share on other sites
Alex 0 Report post Posted September 21, 2007 Alan, tough question to answer. You know your market and this property better than I. How much is it worth to you to get this one off your back? How badly does the investor want it? What's fair is what both parties can agree to. yea, unfortunately that is what I thought you would say. No big deal though. I think I am going to let it go and get on with my life. Alan Alan, let us know what the outcome of this entire transaction came to. I am very curious to know what finally happens. Very nice thread. Share this post Link to post Share on other sites
abohlig 0 Report post Posted October 6, 2007 Alan, let us know what the outcome of this entire transaction came to. I am very curious to know what finally happens. Very nice thread. All the papers for a C4D got signed on Wednesday and I cashed a very nice check later in the day on Wednesday. I know I likely could have made more money if I had finished this project myself, but I still did very well on this one and now I don't have to worry about it too much any more. Someone else gets to worry about all the details and worry about how bad the housing market is etc....... I got 25% of the sale price up front with the remainder due on or before March 1st, 2008. The buyer is paying me monthly interest only installments on the remaining balance and I don't have to pay my investor/lender anything until the sale is completed so I get to cash flow + $1700/month. All this with absolutely not a dime out of my pocket! I know someone is going to ask what exactly I made. I would rather not say exactly, however I will say that it was at the low end of what I was hoping for but much more than you could ever expect for in any one deal. Who knew you could make more money than most people make in a whole yr on just one deal with no money out of pocket at all. All in all this was a FANTASTIC deal and I would do it again in a heartbeat! Alan Share this post Link to post Share on other sites
