Rehab Diary 2 - Quest for the next project

[brianb_cobbres]

Okay, I thought I would start another thread about my quest for our next rehab project.

To bring everyone up to speed, I have mainly been looking for REO properties on the MLS/FMLS due to the time constraints of my J.O.B. Not sure exactly what I am going to post so lets just see what happens.

[brianb_cobbres]

Lets start with my list of favorites.

Sycamore lane - 3/2 built in 1979.

This is on the next street over from the current project which makes it perfect for me as it is withing walking distance of my own home.

I have been inside this house and was not impressed.

The interior needs a complete update including just about everything. Flooring, paint, kitchen, etc..... Probably 15k in materials and labor

Mechanicals - Did not get a chance to inspect so I have no clue

Exterior - Deck is literally falling off the back of the house. Need to replace some rotten wood. All new exterior doors and paint. I suspect the roof will have to go as well. Maybe 10k in materials and labor.

Here comes the tricky part. There is an inground pool. I have been watching houses with pools in this area and they are NOT selling. The pool has got to go to make the house sellable. To make matters worse a large section of the yard fencing is beyond repair. 10k?? No clue


Here are the numbers. The ARV is $210k to $220k, current asking price is $154,900. The home sold for $194k in 2004 and foreclosed for $172k in 2005.

ARV $210,000
Repairs $40,000
Carry $10,000
Profit $40,000 as a starting point

Best offer $120k but no chance they will drop that low. I will try but I am certain they will just ignore my offer. I have to think this one through. They may bite if I get closer to $140k. I have to play with the numbers.

Will update if anything changes.

[brianb_cobbres]

Staying with the pool theme, there is Arden Drive.


I think I may take this one off the list. The place is in such bad shape that it may not be practical to take on as a project. The place is trashed and BrianG and I both put the total renovations as high as 60k.

Other than the pool being ruined, someone went nuts with concrete did a horrible job to boot. Lots of digging would have to be done. This would require gutting the place and starting over. Even the windows are beyond repair but you would never know it from the picture.

ARV $220k
List $154k
Rehab $60k
Carry $10k
Profit $40k to start

Thats what, $110k offer? Then again this place has been on the market for a full year so they may entertain a lowball offer.

[brianb_cobbres]

One more for tonight and one I have to go see this week.

Ritcherson Street

County has it appraised at 114k, other houses in the area have sold as high as $150k yet the current asking price is only $79.5k. I gotta imagine this place is trashed so i will update when I get a chance to visit and check out the house and the neighborhood.


EDIT-----------------------------------------------------------------------------------------------

I just got back from checking this place out. They were very careful with the picture as showing the side of the house would easily explain why the low asking price. The previous owner decided to either close in a couple of porches or to replace the walls with huge 5' X 8' panes of glass. That and they were sagging so I suspect they have to be removed. Actually, I know they have to be removed and the 2 car garage has not be knocked down. They had also been doing some work in the crawlspace that looks like they were trying to turn it into a room/dungeon.

There were some nicer homes in the neighborhood including some new construction (backfilling) so I am going to keep this on my list. Not sure I would pay more than 50k so I will just have to let it sit and see what happens.

[Bernie (FL)]

The only thing I can say about the fencing, is if you do a wood privacy fence, it shouldn't cost anywheres close to 10k. I had a new board on board, Yellow Wood pressure treated fence put in for a very large 11000 sq ft lot for $3000 back in October.

I don't how large the lot is, but $3000 should cover it. If you choose to do a vinyl fence then you are right about 10k maybe less if you can get a local handyman type to install.

If you shop for materials at surplus tile places, etc you should be able to do the rehab for a lot less than 60k.

What kind of pool? Is it concrete, fiberglass or a vinyl liner? Here in my neck of the woods there are 3 types of inground pools as mentioned above. If its one of them there cement ponds then it is going to cost roughly 5k to re-marcite. If fiberglass then the decking may need to be re-surfaced because fiberglass shells are usually guaranteed for life, you may just need a professional cleaning. Finally, if a vinyl liner then you would need a new liner and I don't know what they cost.

What is your profit threshold? I would be extremely happy with 40k. I guess when you've done it as long as you guys have 40k is chump change.

I've yet to take the plunge but I would be happy to clear 5k on my first investment.

[Aldo]

Ritcherson Street. Methinks you have a diamond in the rough there. The inside of a property usually looks worse than the outside, so you have a hard row to hoe; but, you'll probably make enough to buy a new farm from this one.

[Debbie]

Just to give you an idea about the fence----

Due to tornado totally ripping our privacy fence out, we now have a brand new professionally done privacy fence. Dog eared. Side by side pressure treated pine wood and gate. Our lot is 80 X (under) 200. Cost of professionally done fence? $4998.00

Debbie

[brianb_cobbres]

The only thing I can say about the fencing, is if you do a wood privacy fence, it shouldn't cost anywheres close to 10k. I had a new board on board, Yellow Wood pressure treated fence put in for a very large 11000 sq ft lot for $3000 back in October.

I don't how large the lot is, but $3000 should cover it. If you choose to do a vinyl fence then you are right about 10k maybe less if you can get a local handyman type to install.

If you shop for materials at surplus tile places, etc you should be able to do the rehab for a lot less than 60k.

What kind of pool? Is it concrete, fiberglass or a vinyl liner? Here in my neck of the woods there are 3 types of inground pools as mentioned above. If its one of them there cement ponds then it is going to cost roughly 5k to re-marcite. If fiberglass then the decking may need to be re-surfaced because fiberglass shells are usually guaranteed for life, you may just need a professional cleaning. Finally, if a vinyl liner then you would need a new liner and I don't know what they cost.

What is your profit threshold? I would be extremely happy with 40k. I guess when you've done it as long as you guys have 40k is chump change.

I've yet to take the plunge but I would be happy to clear 5k on my first investment.


I was figuring 10k for the fence, some minor landscaping, and dealing with the pool.

[brianb_cobbres]

I had an interesting one show up this morning. Good area, good schools, hmmm


County has it appriased at $130k but shows it was sold for 160k last June. Hmmm, it foreclosed in December, that is awful fast. I wonder what is wrong.

Anyway, this is a 3/2 built in 87. Looks like the 160k price is about right for the neighborhood.

They are only asking 108k so this is either in really bad shape or will be gone before I get a chance to see it.



EDIT______________________________________________ ____________________________________


Wow, what a mess and talk about hard to sell. See the post to the right of the steps? That were the creek embankment starts. It is a steep 6' dropoff. I have to check but I am guess this house is in a flood area and will require flood insurance. Then if you look real close, you can almost see the railroad tracks that run right behind the house. Less that 100' from the back door.

Oh, and what you are looking at really is the front of the house or at least what they call the front of the house.

The side door was open so I let myself in. This would be a major project that in the end may be difficult to sell. I am going to check out the other sales in the neighborhood so not sure what to make of this one yet. Can anyone say 70K?

[smidgen]

Arg.......... newbie in the room. Ummm, I am lost where is the down payment for you to do this kind of buying? I know it is somewhere? This is always where I get lost? I really don't understand Owner Financing? How do you get the seller to put up the front money? Do you just ask them, "hey, I can take this house off of your hands for you if you give me $30,000.00.? I totally understand the repairs and the ROI but where do you the seed money? I am so use to doing it the hard way. I am trying to broaden my mind's eye.

thanks

[brianb_cobbres]

Arg.......... newbie in the room. Ummm, I am lost where is the down payment for you to do this kind of buying? I know it is somewhere? This is always where I get lost? I really don't understand Owner Financing? How do you get the seller to put up the front money? Do you just ask them, "hey, I can take this house off of your hands for you if you give me $30,000.00.? I totally understand the repairs and the ROI but where do you the seed money? I am so use to doing it the hard way. I am trying to broaden my mind's eye.

thanks


These are all banked owned properties (REO - Real Estate Owned) that are listed on the multi-list. I am buying direct from the bank. The amount of money down depends on your lender which in my case is a bank that will loan me up to 80% of the ARV with no money down or out of pocket.

I should add that the bank will loan me the purchase price and rehab money in a manner very similar to Hard Money but with softer terms.

[smidgen]

Thanks so much for the response! I knew that I was in the room with a "big dawg" but now I know I have a lot more to learn and earn!:praise:

Thanks Again

[smidgen]

To calculate ARV (Assumed Retail Value?) do you take a comparison of property values in the area then take a median price to get the ARV? Last question and then I will go back to the newbie forum.

Thanks

[brianb_cobbres]

Thanks so much for the response! I knew that I was in the room with a "big dawg" but now I know I have a lot more to learn and earn!:praise:

Thanks Again


I am not a big dawg, just finishing my first project but thanks

[brianb_cobbres]

To calculate ARV (Assumed Retail Value?) do you take a comparison of property values in the area then take a median price to get the ARV? Last question and then I will go back to the newbie forum.

Thanks


After Repaired Value or Full Market Value is basically what you think you can sell it for after the rehab. And yes, it is based on comparable sales and listing in the same area for the same size and style of house. Everyone has their own little style but I am trying to use the lower end of the range for my offers.

[Bernie (FL)]

As far as the fence goes Debbie and I are right on the money. Her fence was just under 5k for a lot larger lot than mine. As I mentioned previously, my board on board pressure treated wood fence with two gates was 3k installed.

I plan to coat the fence with Thompson's water seal to make it look nice and shiny plus protect the wood.

[Debbie]

As far as the fence goes Debbie and I are right on the money. Her fence was just under 5k for a lot larger lot than mine. As I mentioned previously, my board on board pressure treated wood fence with two gates was 3k installed.

I plan to coat the fence with Thompson's water seal to make it look nice and shiny plus protect the wood.

You know what? Jeff and I are having a rare argument about something...
Jeff wants to STAIN ugly orange/brown thingy color. I thought he was joking...
I gave him my NO! look. I told him that if he gotta do something to the fence, just use the clear thingy. Otherwise, leave it alone---let it age a little. Guess what? He agreed :SM083:

[Greely]

Bernie and Debbie, I would look at Sherwin Williams. Does a good job, and lasts longer. (Think it is called Deckwood Clear) They do have stains added if you prefer. Down side it only comes in 1 gallon containers. Just redone our deck, porch, and dock with this product, and the 5 year old would looks better than new.

If you use Thompson's, add 1 quart motor oil per 5 gallons and this helps some.

[Bernie (FL)]

I agree also, plus Thompson's Water Seal protects the wood from getting that aged grey color.

Greely, thanks for the tip.

Also, I was told to use one of those spray containers that pest control guys use to apply the Thompsons water seal. I saw a friend of mine's fence and it looks nice. He used the pest control container with the sprayer.

[Judd]

Edited

[Teen2233]

Great question, was wondering myself.

[brianb_cobbres]

hey Brian, how are you finding these? Just looking for REO's on the MLS or are you searching for other parameters as well?


These are from the FMLS. There are 400 bank owned or fixer upper properties in my area. Lots to choose from.

[Judd]

Edited

[brianb_cobbres]

i have access to both (FMLS and GA MLS). How do you know which ones to look at or do you run comps on each one??



First, I search for foreclosure, bank owned, corporate owned, fixer upper, estate owned and sometimes owner relocation. My first step is to check the appraised value on the counties website. I try and check every property looking for an asking price that is at or below the county appraised value as the county is usually about 20% below fair market. I also look for properties that seem to be low for a specific area. You really need to know your target market. Sometimes I just get a feeling.

I save anything I find into a possiblities folder for further research. From there I use the Zip Realty website where I can search by address and bring up listings within 1/2 of my target house. This gives me a pretty good idea of what houses are going for in the same neighborhood. Zip also lets you check sold comps but they are usually pretty old.

Now I have a pretty good idea of what the house could be worth. Probably 8 out of 10 I research are listed at or near full market value. Some I discard immediatly, other I leave in possiblites to see if the price drops.

Then I hit the road. Notice I have not called my realtor yet. I visit the house on my own, take a few pictures, and check to see if the doors are locked. Open door equals invite to tour.

I play with the numbers and only call my realtor if the house fits my model.

[Peach State Property Buyers]

Brian,
Which bank have you guys decided to use? I know that you hit some bumps in the road, previously.

[brianb_cobbres]

Brian,
Which bank have you guys decided to use? I know that you hit some bumps in the road, previously.


Right now I am working with Flag Bank. So far so good. They got me out from under the negative am loan and are finally getting me a second so i can consolidate the rehab and carrying costs.

They have a pretty good rehab program at 2 points and prime plus 1-2% but there is a catch. They do not money down but they want you to have 10-15% of the total loan in an account or somewhere that they can get access should you not pay the loan.

[brianb_cobbres]

Made some edits to the properties I am following.

[Debbie]

Hmmm, made some edits?

I noticed that you didn't edit the Sinko De Windows Underground Facility back in....:SM083:

Debbie

[brianb_cobbres]

Hmmm, made some edits?

I noticed that you didn't edit the Sinko De Windows Underground Facility back in....:SM083:

Debbie

I decided the underground facility was a bit to far or a commute. And yeah, I went and looked at a few houses this afternoon and added my comments

[brianb_cobbres]

I also went and looked at another house that popped up on the FMLS last week.

LEICESTER


County only has it appriased at 110k with a current ask of 128k. House 4 doors down is same basic house with asking price of 160K with other sales in same neighborhood going for 150-160k. Was one of the better looking foreclosures I have seen. Seems like it would be an easy rehab and my guess it will sell to an owner occupied buyer.

The problem with a house like this is it does not fit into the rehab loan model. I would have to buy with a traditional mortgage and finance the rehab myself to make it work which I am not quite in a position to do. Maybe in a few weeks if by chance it is still on the market.

[Judd]

Edited

[Debbie]

Brian, what keeps you from doing this full time and leaving your day job?

Um, cause he's a scaredy guy because he keeps breaking multiple windows....
I mean, breaking a mirror costs you 7 years bad luck. But breaking a window? That'll cost you multiple broken windows of every rehabs so he needs a JOB to pay for his unfortunate curse......

Does the above help answer to your question, Judd?

Debbie

[Judd]

Edited

[Greely]

Debbie, I think men and women have different safety factor's. I had set my goals early on and have surpassed them. I have all my construction equipment sitting in the yard for sale, but have reservations in saleing it. Sure, I could retire and survive, but I am by no means rich, and even at the point that I want to quit working. If someone wants to come by and pay the price, I will sale, but will probaly go back to work anyway. I have invested in RE this last year that I could live comfortable the rest of my life, but I ain't ready yeat. I know I can do more an have fun doing it. It's a man thing, I guess.

Lydia was fussing about it the other day when I was trying to put a deal together. "Why are you doing this?" I guess working is in my blood. I ain't done yet, and I am having fun, and enjoying life. I enjoy having problems to solve and doing thing's other people aren't willing to do. I guess in a way it is a adrenaline rush to a point. I don't know, but she claim's I love stress, and chaos. I don't know

[brianb_cobbres]

First of all, it was ONE window. One stinkin little pain of glass that I will never live down. :SM103:

"Brian, what keeps you from doing this full time and leaving your day job?"

Honest answer? Because I make a pretty decent living with my J.O.B. and been at it long enough that people pretty much leave me alone. You would have to go back to some of my original posts but one reason I still am at the J.O.B. is that I believe the owner is going to sell the company some time in the relatively near future and that I may profit from that sale. You need to understand that when I started with the company they had maybe 30 million in sales where 5 years later we are looking to break 2 billion in sales. I have been there from the beginning and hope to profit in the long run. Its tough to walk away from the potential windfall. Mind you it is still just potential.

So the question becomes, could I do this full time? and the answer is yes in a heartbeat. I has been less than a year since I discovered the wonders of REI and I am beyond hooked. That said, I have a bit of a phobia about money or the lack of money that will keep me in my job until I am sure I can support my family. I do not need another panic attack thank you very much.

So I have set some goals. I want to see myself, JoeC, and BrianG all completely debt free in the next 2-3 years. During the same time we will build a portfolio of rentals for the cash flow and hopefully be able to step one at a time from our J.O.B's into full time REI.

As for cash, that is not really a problem. I had hoped to be on my third rehab by now but I greatly underestimated the amount of time the first project would take and as a result have had to scale back on the long term plans. I also got burned by a mortgage broker who did manage to get me the first mortgage on the house but was never able to come up with the second that was supposed to be used to fund the rehab. Instead we wound up with a large portion of the rehab being put on credit cards with some additional cash being put in by JoeC and myself. That problem goes away on Friday at 1pm when I finally will get the 2nd I have been waiting for so I can consolidate the rehab expenses and put my cash back where it belongs. Which leads to the purpose of this thread being my search for my next project.

Want me to keep going? Okay, I have nothing better to do. I am also trying to get my own housing situation straightened out. We have come to hate our house mainly because we hate our neighbors. I am in the process of arranging financing so that I can buy another house, carry both, move, then put this one on the market. I will have a very busy summer if this all pans out and I feel doing this for my family and for my own sanity is important enough for me to concentrate my energies on this little project.

So Judd, how about you get yourself moved into the area and lets sit down and figure out how to work on some projects together. My biggest contraint right now is time where it sounds like you will have plenty.

[Judd]

Edited

[brianb_cobbres]

Staying with the pool theme, there is Arden Drive.


I think I may take this one off the list. The place is in such bad shape that it may not be practical to take on as a project. The place is trashed and BrianG and I both put the total renovations as high as 60k.

Other than the pool being ruined, someone went nuts with concrete did a horrible job to boot. Lots of digging would have to be done. This would require gutting the place and starting over. Even the windows are beyond repair but you would never know it from the picture.

ARV $220k
List $154k
Rehab $60k
Carry $10k
Profit $40k to start

Thats what, $110k offer? Then again this place has been on the market for a full year so they may entertain a lowball offer.


This one went off the market today. Then again, it has gone on and off at least 6 times in the past so who knows.

[brianb_cobbres]

Here is an interesting one that popped up today.

3999 Loch Highland

County has it appriased at $300,000

Tax records show

Sale Date Amount Seller Buyer Book Page

06-SEP-05 $373,157 BARKER ARTEN DEUTSCHE BAN 14234 3941
23-AUG-04 $320,000 NEW BEGINNIN BARKER ARTEN 14046 4940
28-APR-04 $180,000 WILLIAMS GER NEW BEGINNIN 13968 6162

So it sold for 320k in 2004 but foreclosed for 373k in 05 and yet they are only asking 219k.


Me thinks I need to go see this one right away.

[Debbie]

Nice looking house.

But I do know why it's selling for less money.....see that middle roof falling down? :xxrotflma

[brianb_cobbres]

Here is an interesting one that popped up today.

3999 Loch Highland

County has it appriased at $300,000

Tax records show

Sale Date Amount Seller Buyer Book Page

06-SEP-05 $373,157 BARKER ARTEN DEUTSCHE BAN 14234 3941
23-AUG-04 $320,000 NEW BEGINNIN BARKER ARTEN 14046 4940
28-APR-04 $180,000 WILLIAMS GER NEW BEGINNIN 13968 6162

So it sold for 320k in 2004 but foreclosed for 373k in 05 and yet they are only asking 219k.


Me thinks I need to go see this one right away.


Me thinks there may have been some funny stuff with this place. Other houses on same street going for right around 300k. How did it foreclose for 373k. Fraud maybe? Going to have to go check this one out.

Here is the write up from the MLS

Description
Huge price reduction - bring all reasonable cash offers now !!!! Great square footage!!!Full finished basement, bonus room, office. Wonderful neighborhood. Open floor plan. Thousands below market!!!


And a picture of the back of the house.

[Debbie]

Nice looking rear of the house. At the very least, the rear roof ain't falling off :SM083:

[brianb_cobbres]

Nice looking rear of the house. At the very least, the rear roof ain't falling off :SM083:

I officially request an ignore button :SM083:

[brianb_cobbres]

Here is an interesting one that popped up today.

3999 Loch Highland

County has it appriased at $300,000

Tax records show

Sale Date Amount Seller Buyer Book Page

06-SEP-05 $373,157 BARKER ARTEN DEUTSCHE BAN 14234 3941
23-AUG-04 $320,000 NEW BEGINNIN BARKER ARTEN 14046 4940
28-APR-04 $180,000 WILLIAMS GER NEW BEGINNIN 13968 6162

So it sold for 320k in 2004 but foreclosed for 373k in 05 and yet they are only asking 219k.


Me thinks I need to go see this one right away.


I stopped by this house on my way home this evening. What a great neighborhood and the house is on a lake.

I did find out that the house has been empty for 12-18 months and that it really is worth around 320k. The bad news is the exterior condition. I doubt there is a single piece of lumber on the exterior that could be saved and this is a pretty good size house. That, and the flat room. I could not break in (the neighbors were watching) but what I could see seemed to be in decent shape but outdated. You are looking at a 40-60k renovation, and maybe more depending on the condition of the mechanical systems.

Could be a really great house, in a very nice neighborhood, and in a outstanding school system. I may have to arrange a formal visit

[brianb_cobbres]

Lets start with my list of favorites.

Sycamore lane - 3/2 built in 1979.

This is on the next street over from the current project which makes it perfect for me as it is withing walking distance of my own home.

I have been inside this house and was not impressed.

The interior needs a complete update including just about everything. Flooring, paint, kitchen, etc..... Probably 15k in materials and labor

Mechanicals - Did not get a chance to inspect so I have no clue

Exterior - Deck is literally falling off the back of the house. Need to replace some rotten wood. All new exterior doors and paint. I suspect the roof will have to go as well. Maybe 10k in materials and labor.

Here comes the tricky part. There is an inground pool. I have been watching houses with pools in this area and they are NOT selling. The pool has got to go to make the house sellable. To make matters worse a large section of the yard fencing is beyond repair. 10k?? No clue


Here are the numbers. The ARV is $210k to $220k, current asking price is $154,900. The home sold for $194k in 2004 and foreclosed for $172k in 2005.

ARV $210,000
Repairs $40,000
Carry $10,000
Profit $40,000 as a starting point

Best offer $120k but no chance they will drop that low. I will try but I am certain they will just ignore my offer. I have to think this one through. They may bite if I get closer to $140k. I have to play with the numbers.

Will update if anything changes.


BrianG and I took a closer look at this place today. Looks like we may have some structural problems with one corner of the house, the driveway is in much worse shape than I remember, and there is severe rot in what may either structural or decrative beams. May be more than I want to take on but will keep an eye on it.

[brianb_cobbres]

One more for tonight and one I have to go see this week.

Ritcherson Street

County has it appraised at 114k, other houses in the area have sold as high as $150k yet the current asking price is only $79.5k. I gotta imagine this place is trashed so i will update when I get a chance to visit and check out the house and the neighborhood.


EDIT-----------------------------------------------------------------------------------------------

I just got back from checking this place out. They were very careful with the picture as showing the side of the house would easily explain why the low asking price. The previous owner decided to either close in a couple of porches or to replace the walls with huge 5' X 8' panes of glass. That and they were sagging so I suspect they have to be removed. Actually, I know they have to be removed and the 2 car garage has not be knocked down. They had also been doing some work in the crawlspace that looks like they were trying to turn it into a room/dungeon.

There were some nicer homes in the neighborhood including some new construction (backfilling) so I am going to keep this on my list. Not sure I would pay more than 50k so I will just have to let it sit and see what happens.


I went ahead and had my realtor pull comps on this project. I figured there were at least a few people out not familiar with realtor comps. I went ahead and converted to word

[brianb_cobbres]

I love a good bidding war. I am looking to put in an offer on the house with the funky enterance but wanted to make sure I had the financing ready to go. I now have a broker and a bank working up the numbers and will add a third party to the mix tomorrow. I will then let them know about the others and see who comes up with the best package.

Ha, just let the bank guy know I am talking to other lenders.

Put it in writing, provide a pre-approval letter with specifics to show the maximum I can go on the purchase price, then put in an offer and see what happens. This is the fun stuff

[brianb_cobbres]

I love a good bidding war. I am looking to put in an offer on the house with the funky enterance but wanted to make sure I had the financing ready to go. I now have a broker and a bank working up the numbers and will add a third party to the mix tomorrow. I will then let them know about the others and see who comes up with the best package.

Ha, just let the bank guy know I am talking to other lenders.

Put it in writing, provide a pre-approval letter with specifics to show the maximum I can go on the purchase price, then put in an offer and see what happens. This is the fun stuff

Funny, I started asking questions about this house and it went of the market the same day. Under contract but accepting back up offers. 9 months on the market and it goes under contract the same day I look at it. I doubt it.

[brianb_cobbres]

Okay, this should be fun.

I have two different realtors working for me. One is very conservative and I like them very much but they are not as aggressive as I would like. The other is a bit of a snake but has basically agreed to throw out some real lowballs (all justified) and to really get aggressive. I am not under an agreement with either but the first knows and has no problem with me using someone else for the more, um, funky deals. They were a bit releived that I was not going ask them to low ball.

So I figured I would give the snake a shot.

This is one of the houses earlier in this post on Sycamore Lane. Will appraise 210-220k with current ask of 154.9. I told him I was only willing to pay 107k with seller paying closing costs. So get this. He just emailed me comps on the house and I can tell he intentionally chose houses close to but outside the target neighborhood. His comps show the value at just under $180k. I am starting wonder if this guy can pull it off.

He just emailed back and said he is going to have an inspector friend of his swing by the target house tomorrow to validate the repair list I put together. I think he is going to incude this guys opinion with the offer.

He may just pull it off. More to follow.

[brianb_cobbres]

Well, he did not pull it off :mat:

I still find it amazing that a house can sit on the market for months yet go under contract the same day I put in an offer. It really is just too convenient. So convenient that a house I tried to buy three months ago ,that went under contract the same day I put in an offer, is still sitting there empty. Why bother to list it if you really do not want to sell it.


And the Brian curse is back. For those of you new to the board, the Brian curse is that as soon as I decide I like a house, it sells to someone else. This is the first week I have been seriously looking for my next project and at least 5 from the top prospect list have gone under contract. Many of these had been on the market for months.

Working on a new list now and yes it is 3:30 in the morning and I have to work tomorrow. Insomnia is a wonderful thing. It gives me so much time to do anything but sleep.

[BrianG_Cereniti]

and he is really fun to talk with when he does not have sleep...:SM083:

[JoeC_Cereniti]

Cereniti - We re-build peoples dreams, one property at a time... What's with the catch phrase? I don't think the board of directors approved it.:SM083:

Well, I am going to go after a house myself now to see if it is a Brian curse or a Cereniti curse.

[brianb_cobbres]

I just ran across something new.


A home that is possibly owned or being managed by a corporate relocation company. Its listed as corporate owner but is not a foreclosure or REO. The MLS listing specifically says great for renovators and investors.


Has anyone had any dealing with a relocation company? Should I just treat this like it was bank owned?

Let me know, I am going to look at it this morning.

[brianb_cobbres]

One more for tonight and one I have to go see this week.

Ritcherson Street

County has it appraised at 114k, other houses in the area have sold as high as $150k yet the current asking price is only $79.5k. I gotta imagine this place is trashed so i will update when I get a chance to visit and check out the house and the neighborhood.


EDIT-----------------------------------------------------------------------------------------------

I just got back from checking this place out. They were very careful with the picture as showing the side of the house would easily explain why the low asking price. The previous owner decided to either close in a couple of porches or to replace the walls with huge 5' X 8' panes of glass. That and they were sagging so I suspect they have to be removed. Actually, I know they have to be removed and the 2 car garage has not be knocked down. They had also been doing some work in the crawlspace that looks like they were trying to turn it into a room/dungeon.

There were some nicer homes in the neighborhood including some new construction (backfilling) so I am going to keep this on my list. Not sure I would pay more than 50k so I will just have to let it sit and see what happens.


I decided to go ahead and put in an offer on this house. I am offering 30K for the house as is. Comps around 120k. I do not feel bad about the offer due to the condition of the house and I found another house on the tax reocrds that Wells Fargo let go for under 40k for a house in similar condition.

The plan is to renovate, refinance to pull out some cash, the to try to both rent or sell and see which happens first.

Cant wait to see what happens

[brianb_cobbres]

Feels good to be back out there looking for another project after a few weeks away. I saw a few this morning and all seemed like good prospects so i have to do some research. The good news is a realtor I know had a nervous breakdown but had the good sense to give me his FMLS password before he went to live with his family in another state.


Anyway. This picture pretty much speaks for itself and yes I think I am going to offer on this place.

[Peach State Property Buyers]

I am beyond jealous that you have a FMLS password. I keep hoping that someone will offer me one.

[Mr Investor]

Hi Everyone

Don't feel so bad AlantaBasementBuilder acouple years ago I did have a Realtors Log in password and would you believe it I LOST IT and to this day I still kick myself in the you know what and the sad part was the Realtor that gave me it passed away two weeks before I realized I couldn't find it.

Everyone have a safe extended 4th of July Holiday.

[Debbie]

I know that MLS stands for Multiple Listing Symptoms

What does FMLS stands for? Famous Multiple Listing Series?

Debbie

sorry--in a sarcastic mood thanx to Adobe Photoshop Elements 4.0 thingy

[brianb_cobbres]

First Multiple Listing Service

We have both the MLS and FMLS in our area. MLS is primarily south of Atlanta with FMLS covering the north but they overlap quite a bit.

[thepower]

Thats cool, I have access to the Ga. MLS through an appraiser friend mine. I always thought that fmls/mls had primarily the same content..

[brianb_cobbres]

Thats cool, I have access to the Ga. MLS through an appraiser friend mine. I always thought that fmls/mls had primarily the same content..


Notice I said they overlap quite a bit. I may have been understating the situation. They overlap quite a bit but Realtors in this area prefer the FMLS.

[thepower]

Notice I said they overlap quite a bit. I may have been understating the situation. They overlap quite a bit but Realtors in this area prefer the FMLS.
Really? a few realtors that i spoken to refer to the mls more when they have sent me market reports.... Must be a choice thing.. Never the less, it makes the hunt easier having access..

[brianb_cobbres]

Color me green. Why do they even make exterior paint in these colors :SM114:

[Peach State Property Buyers]

[QUOTE=Mr Investor]Hi Everyone

Don't feel so bad AlantaBasementBuilder acouple years ago I did have a Realtors Log in password and would you believe it I LOST ITQUOTE]

I am hoping to buy one. Seriously. I see them pop up every now and then on Craigslist. A reator is leaving the biz and sells his password.

[Debbie]

Color me green. Why do they even make exterior paint in these colors :SM114:

EGADS!!!!

I noticed the owner must've ran out of green paint since there's tan paint on the right side above the middle roof....

[brianb_cobbres]

You know it is never a good thing when the FMLS comments says you have to sign a waiver before viewing the house. I gotta suspect they had a bit of a water problem.

[Debbie]

[QUOTE=Mr Investor]Hi Everyone

Don't feel so bad AlantaBasementBuilder acouple years ago I did have a Realtors Log in password and would you believe it I LOST ITQUOTE]

I am hoping to buy one. Seriously. I see them pop up every now and then on Craigslist. A reator is leaving the biz and sells his password.

If I recall correctly, buying the MLS password access costs between $500 - $1k per year, depending on location. My recollection correct?

[Peach State Property Buyers]

Quick question... How long are realtors log in passwords good? I know someone who got her realtor's license, signed on with a company, sold real estate for one month. Could I get her log in and use it?

[Debbie]

You know it is never a good thing when the FMLS comments says you have to sign a waiver before viewing the house. I gotta suspect they had a bit of a water problem.

I've never heard of that! Brian, are you pulling our legs?????:SM032:

[Debbie]

Quick question... How long are realtors log in passwords good? I know someone who got her realtor's license, signed on with a company, sold real estate for one month. Could I get her log in and use it?

If I'm not mistaken, password access is good for one year.

[Peach State Property Buyers]

Brian,
Do you know the answers?

[brianb_cobbres]

I've never heard of that! Brian, are you pulling our legs?????:SM032:


Nope, not kidding at all. The mold must have been so bad they had to remove all the flooring and the bottom 4 feet of ALL walls. Not the first I have heard of it.

[Peach State Property Buyers]

One year? I am SO calling her!

[Peach State Property Buyers]

Oh, that green house is not just ugly due to the paint color in my opinion. It's just ugly in general.

[brianb_cobbres]

I did find one house I really want but it may be a bit more than I can take on right now. Easily comps at $420,000 but current ask is under $300,000 and it has been on the market for a very long time.

And speaking of paint, look what the previous owners did to the inside of the house. They painted the fireplace, this wall with a built in fish tank, and a wall of stone in the entry way in the same manner. The entry way wall is 2 1/2 stories tall.

[brianb_cobbres]

I did find one house I really want but it may be a bit more than I can take on right now. Easily comps at $420,000 but current ask is under $300,000 and it has been on the market for a very long time.

And speaking of paint, look what the previous owners did to the inside of the house. They painted the fireplace, this wall with a built in fish tank, and a wall of stone in the entry way in the same manner. The entry way wall is 2 1/2 stories tall.



To give you some idea, here is a picture of the house directly across the street from the painted stone house in the above picture.

[Mr Investor]

[QUOTE=AtlantaBasementBuilders]

If I recall correctly, buying the MLS password access costs between $500 - $1k per year, depending on location. My recollection correct?

Debbie and everyone

I'm not for sure how long a Realtors password is good for but I have heard it is 1 year.

I really can't say because as I stated the Realtor that gave me their password passed away and since I only used it a couple of times when they first became a Realtor and then I became busy with other things. I went to try and use it again but found out I had forgotten the password and that's when I went to ask the Realtor friend for the password and I found out he had passed away.

I still wish I knew ahead of time of his passing away so I could of made it to his funeral to pay my respect to his wife but he passed away months before I found out.

[BSH]

OK, what's the "FMLS?" I've heard of MLS, but not FMLS.

And passwords to the MLS . . I'd pay $1000+ to have one. I thought you have to be a licensed realtor to use it though (well, anyone CAN use it, but you're not supposed to--maybe could get into trouble?).

[Debbie]

OK, what's the "FMLS?" I've heard of MLS, but not FMLS.

And passwords to the MLS . . I'd pay $1000+ to have one. I thought you have to be a licensed realtor to use it though (well, anyone CAN use it, but you're not supposed to--maybe could get into trouble?).

BSH,

I got you beat on that question. Go to page 6 of this thread. See post #57 and read from there. :grin:

Debbie

[brianb_cobbres]

Time to start putting in offers again. Have fresh preapproval letters will travel. Will posts lists and stuff as I go through it

[brianb_cobbres]

Just spotted this on the FMLS. May I suggest taking a photoshop class, or are those the whitest garage doors on the planet.

[Debbie]

Oh jeeze!

I told Jeff that BrianB has posted another pic. He walked over and read the statement. Then I scrolled down to the pic. I knew he'd laugh but I didn't think he actually fall to the floor and do this.....:xxrotflma
I had to keep hushing Jeff that the girls are sleeping and had to help him off the floor. Kinda hard to do when our golden retriever kept pulling Jeff back onto the floor and lick Jeff's laughing tears off.

Good find, Brian!

[brianb_cobbres]

Okay, I am pulling the trigger on two offers tomorrow. I cannot disclose the specific address or pictures as rumor has it Judd has been following me around Marietta looking for a deal :SM013:

That said, the first one is an interesting mess. The house has been on the market for 294 days due to the owner relocating. Since then the owner has fallen into some financial trouble and the house has fallen into pre-foreclosure and, listing agents words, into disrepair. The house is currently listed at full market value due to the current mortgage amount and has no bearing on the actual value. What makes it interesting is the bit about a short sale and pre-foreclosure is hidden in the private comments on the MLS so no one really knows what is going on. I decided to go with a fairly aggressive offer to see if the bank will bite.

The second is for a real stinker that needs a complete overhaul but it is in a good rental area. Here is the math

Offer $40,000
Rehab Expenses $30,000

Total investment $70,000 give or take.

I would then refinance for $100,000 taking out $30k in cash and hold as a rental.

I will let you know what happens.

[Judd]

Edited

[brianb_cobbres]

Nah, I have not seen much I like in Paulding. Foreclosure seem to be over priced. Sticking to Cobb and Cherokee for now.

And no, I have no experience with the preforeclosures due to time constraints. We may want to get all the folks in our area together for a joint marketing campaign to get leads.

Lunch on Saturday?

[Debbie]

If you guys pay my way, can I come too?

Debbie

[Judd]

Edited

[Debbie]

You stinker!!! :SM023:

[brianb_cobbres]

I have made a number of posts asking what the heck realtors and sellers are thinking. This time I have to ask what the builder was thinking

[brianb_cobbres]

1751 Nathan Ln
$96,600
Broker: PLUS01 FMLS#: 3298538
City: AUSTELL State: GA
County: COBB Zip: 30168
Subd: Gordon Acres Stories: 1 Story
Bedrooms: 2 F/H Bath: 1/0
Year Built: 1955 Age Desc: Resale
Elem: SKYVIEW Style: Ranch
Middle: GARRETT Lake: ALLATOONA
High: PEBBLEBROOK



I find this FMLS listing humerous for not other reason than every time I read the address I think of some guy running around the place chasing a mouse! Lets see who gets the reference.

[Judd]

Edited

[brianb_cobbres]

Thankfully school starts again on Monday. I have been way to busy.

Anyway, I just put in an offer on a house here in Marietta. We are having trouble getting the listing agent to return calls or send us the bank required addendums but went ahead and set the offer in anyway. We may have to call his broker to get him moving.

[brianb_cobbres]

Bazaar quotes from the FMLS


"copper piping removed and replaced with PVC"


Mkay...

[brianb_cobbres]

Going through the FMLS again this morning and ran across this very strange write up on a property.

Directions: NORTH ON SOUTH COBB PARKWAY.LEFT ON AUSTELL PROPERTY IS ON LEFT BETWEEN HICKS AND CALAWAY.DIRT DRIVEWAY.NO SHOWINGS AFTER DARK!

What goes on there after dark?

[Aldo]

Might this be a war zone?

[TommyOH]

Yeah, if they won't show it at night, I'd be wary of being there at night....lol

[Peach State Property Buyers]

I know this area. It's not a war zone. Maybe they are just a bit nutty. LOL!