mpine 0 Report post Posted May 12, 2005 So I get a phone call for a fixer upper in a WAR ZONE...... conversation details.... Property worth 195k Mortgage remaining 185k Monthly Payment $1,600/mo Since this property is in a war zone I do not wish to SLO it and plan to CA it as follows: Handyman Special $210,000 $10,000 Down $1800/mo @ 50% rent credit Final Sale $210,000 - 10,000 Down - 10,800 Rent Credits ________________________ Total $189,200 If anyone has any recommendations on how to deal with a War Zone property I am all ears. I am signing this property up next Saturday. Mike Share this post Link to post Share on other sites
mpine 0 Report post Posted May 12, 2005 heh... I posted an ad on Craigslist and my phone is already ringing off the hook... 210k Handyman Special 3 bed 1 BathNo Bank Qualifying$10,000 gets you in$1800/moRent Credits available Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted May 13, 2005 Sweet deal Mr. Pine.Hope you see a payday outta this. This Craig's List thing....I see that some of you use it pretty often.I'm wondering if it's more beneficial for the guys and gals that arein the bigger cities. Yes?No? I think I'll go play around and see whatthe buzz is. Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted May 13, 2005 K. I'm back. I did a quick scan and noticed most of the cities/areas listed werethe larger ones. I guess I'll just stick to my 2 cans-n-twineand hollerin' As far as dealing in warzones...I haven't and don't.BUT 50% of my CA deals were categorized in the fixer department.(1 outta 2 )There's folks that need some help getting into a home that does not mindfixing it up. Your typical wholesale/rehab deals are more cash-intensive.This is "voided" when utilizing CAs to get the deal done.A bonus to these type deals is that you get paid without lifting a hammer. Hope everything works out. Share this post Link to post Share on other sites
Brian - L.V. 0 Report post Posted May 13, 2005 This Craig's List thing....I see that some of you use it pretty often.I'm wondering if it's more beneficial for the guys and gals that arein the bigger cities. Yes?No? It used to be really good for me, but lately it's become so corrupted (real estate for sale section) with spam-like ads that it's hard to find/list any thing. It's all people like agents/mortgage brokers offering assistance or people saying they buy houses fast in the for sale sections. There is a place for ads like that, but they're all mixed in with the houses for sale. Now I just place a small ad in the real estate wanted section and forget about it. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted May 13, 2005 Mike, my experience with fixers and lease purchasing has been very good. I wish I had more of 'em. I don't do the fixing myself because, well, because I am a complete incompetent when it comes to those manly sorts of things...My approach is as your's is here. Work with the homeowner and set up a CA. Get him better terms than he ever thought possible. Get the word out loudly, as you have already done on Craig's List. Use the buzz words: needs work, no qual, sweat equity, etc. As you see it gets the phone ringing. Get it under wraps, Mike! Keep the option money...all of it. It'll be interesting to see if you get $10K option money on a $200K fixer. Whatever you do get, though, it sure beats buying, fixing, renting, vacancies, re-fixing, vacancies, etc. Share this post Link to post Share on other sites
mpine 0 Report post Posted May 13, 2005 yeah, i requested 10k, but it is negotiable... I figure ask for the stars and settle for the moon....... Id happily take 7k to be rid of this. I even plan to give the happy homeowner a $250 or $500 Home Depot Gift Card depending on the option money put down. The homeowner has no interest in the option money, all she wanted to know was how much my service would cost her... aint motivated sellers great? Mike Share this post Link to post Share on other sites
MichaelC 160 Report post Posted May 15, 2005 yeah, i requested 10k, but it is negotiable... I figure ask for the stars and settle for the moon....... Id happily take 7k to be rid of this. I even plan to give the happy homeowner a $250 or $500 Home Depot Gift Card depending on the option money put down. The homeowner has no interest in the option money, all she wanted to know was how much my service would cost her... aint motivated sellers great? Mike <{POST_SNAPBACK}>Sounds like a plan, Mike. And, yes, motivated sellers make the world go round. Share this post Link to post Share on other sites
mpine 0 Report post Posted May 28, 2005 The house is a 3bd/1ba/kitchen/LR on topAccessory Apartment 2bd/1ba/Kitchen/LRCottage is a studio with kitchen and living area Signed up the War Zone property. Terms we agreed to were $185,000 owed on the property, monthly payments are $1400/mo so we agreed to no less then $1550/mo rent. This is definitly a handyman special or an all cash purchase. So I am looking at $210,000 Purchase Price- $ 8,000 Option Consideration $ 1,600/mo rent w/ 50% RC -$800X12= -$9600_____________________________________________Final Purchase Price $192,400 I am also going to offer this property as an all Cash Purchase for $190,000 with my $5,000 included as the assignment fee. Mike Share this post Link to post Share on other sites
MichaelC 160 Report post Posted May 29, 2005 Congratulations, Mike! This is a CA, correct? Share this post Link to post Share on other sites
mpine 0 Report post Posted May 29, 2005 Yes, my very first CA which will hopefully lead to many more Mike Share this post Link to post Share on other sites
MichaelC 160 Report post Posted May 29, 2005 Excellent, Mike. You know what's next...market the heck out of that place! A sign on the property, directional signs around the neighborhood, online ads, (don't forget Craig's List), newspapers, flyers, etc. Move that baby, pass Go, and collect your $200. Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted May 29, 2005 Congrats Mike! $210,000?!?!? sheesh I can pick up properties like this from $25,000 on up.But then again, different market...different prices. Move that baby, pass Go, and collect your $200. In this case.... $8,000 (or is it $5,000? I'm confused) sweet... Share this post Link to post Share on other sites
mpine 0 Report post Posted May 30, 2005 I priced the option money way to high to see what results I would get, and at $10,000 I got 1 reply in 2 days.. so I have revised my numbers to make it more attractive. The new numbers are... $210,000 Purchase Price $-7,500 Option Consideration $1600/mo Rent - 75% Rent Credit = -$14,400 _______________________________ Price at closing = $188,100 This is making the homeowner $3,100 more then the contract price of $185,000 which should leave her extra happy making $400/mo cash flow plus 3k at closing. There is also still room in this to reduce the price further without affecting my option consideration or the very generous rent credits. I am also going to throw in a $250 Home Depot or Lowes Gift Card to get the new homeowners a nice little start in the repairs. Any and all opinions are always appreciated... Mike Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted May 30, 2005 That's an excellent idea to offer your buyers a gift card to a place like Home Depot or Lowe's. Excellent, especially for these CA fixer deals.I think I'll look more into these.I see lotsa opportunity that I've been passing up. Here's a great opportunity to own your own home without banks (at first), repair it how you want, and oh.....here's some $$$ to fix it up too. *In all actuality, they're the ones paying for it. Beautiful. Share this post Link to post Share on other sites
