So this is a situation that 99% of real estate investors wholesalers find themselves in, they’re talking to a seller that wants way too much money, you get on the phone with them. And immediately they’re like, just give me your offer. Give me your best offer. So it’s really hard to connect with them find out the motivation. So that’s what happened. This is deal that we have right, here we are
I’m busy. So let’s just get right under business. What’s your cash offer for it?
And he just wanted to get me off the phone. So we start talking about the condition of the property, you know, what I can pay depends on the condition of the house, he started telling me about what the house is worth, but work he thought it needed. And it was just like, kind of generic stuff like carpet paint, he actually doesn’t live there. There’s a tenant that lives there. I said, Do you have any pictures or I don’t have pictures. So I just thought it would be easy to just go see the house.
This is an interesting situation very hard to develop rapport with the seller over the phone, once went to lunch, and I thought this would be a good opportunity to show him hey, I’m willing to go to the house, show him that. I’m a real investor. I think I can set myself apart from the other investors that way. After seeing the house, then I can make him multiple offers. You know, if I can buy it for cash, as I go buy it on terms if we can do an ovation, we partner on the property together and do a flip together. Lots of different options, but you’re going to see a house you need to determine Okay, is it worth my time? Is the seller really going to sell or is there motivation? If someone is just like, Yeah, I’m gonna list it if I don’t get what I want. Or there’s like, I’m just gonna keep it if I don’t get what I want. That’s another reason not to go see the house because you can just give them a low range and see what they say to that. But anyway, that’s kind of a in a nutshell what we’re going to do today by seeing this house, there’s the house
are you Jeff, Nathan, Nathan? Yeah, this
Michael Michael. I have not Oh, you’re not
double showing at the same time.
Okay, so what’s what’s the situation like are you moving out of here? He’s decided to sell it or
Yeah, he’s had his own house
the house needs like a ton of work
maybe probably got worse
never to buy one. And now
I’m hoping like so. Like I was just talking to friends already. And I even had a dumpster drive to my driveway and it’s still full of crap.
Would it be helpful if we were to help you stuff out like Iron Brew? Are you are you wanting to go through all that yourself and get your paper through right
Sounds like you might need like a month or two to get out
You know I would be your landlord or you know whoever until you move out Yeah. And I would be willing to work with wherever however to make it work
While we get to go in or you guys can go first multiple investors involved and that’s just how it is like in just from looking on the outside through looks okay. If you’re gonna sell this thing for top dollar you’re gonna have to you know fix the siding. Maybe the paint it you got the screens the window there okay. You’re going to need the landscaper to like if you want to sell this thing for top dollar you’re gonna have to fix the yard. So this might not be the best option for fixing flip at the price of the seller wants you’re probably going to have to this will be a rental you’re more than welcome to take us through a little tour you can and I’ll see kind of what work needs to be done is a fraction of what was in here Yeah, you said you 30 times.
Stuff 60 times 60 times can see this probably we need to redo this display for Mike.
Yeah, it’s just the cabinets are bad but he’s original original wood their original maple backyard.
Yeah, it’s a reasonable size. I think what we’re doing down here, out
Have priority to do this?
Next fed monitor is even deeper down there, but assuming down there despite more of the same just two bedroom NBN storage on the right. This probably gonna take more than a month or two to get this stuff out for you if you guys just did it alone, you know? Okay, so this is your furnace. Cooler or water coolers now
we get kind of an idea of the same, we just have to like get a component like clean out completely and just redo it.
All right. Well, I’m gonna talk to Michael about what I can offer. I gotta run my numbers. But yeah, he has won a lot more than he was asking for more. Unfortunately. I’ll reach out. It’s nice at best of luck. All right, everyday. Yes, yeah
That is a perfect example of why you would want to go see a house in person. The seller told me that the house just needed carpet paint, we go inside the house, absolutely trashed. It needs a complete remodel mold, waterfall and out leaking. You got the swamp cooler that’s destroying the house. You know, flooring, it’s just completely destroyed. So it can definitely take a seller’s word for what the condition of the house unless you can get pictures or go see the house yourself. Now when I go talk to the seller, I have I don’t want to say ammo to like, kind of attack them. But it’s more of like I have more information to say, hey, look, have you seen this house? I can show you the pictures, I can send you the video that I did to this house needs a complete rehab. These are the options that I see available to us right now. Okay, so I’m about to call Michael. I just went to see his house. Terrible, terrible condition. I just sent him a text message about the photos from the property to show him that, you know, I saw it, it’s a lot worse, we’re gonna have this discussion. He just wants an offer. I’m not just wanting to make a quick offer and get off the phone. I’m trying to figure out how we can structure a deal all probably offer 307. You know, looking at three of seven, I might I might have to go lower than that. So 304 gets a 10% return on this property. If it takes us six months to rehab it. Man, this house is bad. Okay, I’m going to call them and this is the kind of guy that’s going to try and get your offer out to you immediately. I’m gonna try my best to not just make my offer immediately. Let’s see how I do. I can talk a big game. But this guy this guy’s a freakin bull. Hey, Michael, how are you? Good, thanks,
How you doing?
Who? You know, it’s a good day. It was a it was quite the property got there. Once I got down there and saw it. I’m pretty hesitant to make my cash offer just because I know it’s a lot, probably a lot lower than what we initially discussed, just without me seeing it. But it seems like you want a cash offer a 1031 exchange so
Okay, so like doing a sell, like if I were to buy it on terms and you finance me on the flip where I could pay a little bit more money? Are you saying that? Maybe not? That wouldn’t be as intriguing to the numbers? I mean, okay, it all depends on what you’re getting out of it. Are you open potentially to you know, partnering up with me on this flip where you know, you bring in some of the money and I do I get the rehab going and we flip it together? Would that be something you’re interested in or not necessarily?
I mean, if I was gonna do that, why would I need you? I’m not gonna pay someone a lot of money with no risk to call a few people to come in and put new flooring in of course yeah.
And I understand that it wouldn’t necessarily be like hey you do you pay for everything and you know there’s no risk on my end I’m just you know, I’m exploring options because after running
if you want to put up the money for the rehab, I’m open to that I’m not putting up I’m gonna do the rehab and put up all the money I’ll just do it myself right
No, no, I totally make money that’s fine. Yeah, you know, because again, I want to I’m exploring options on this one because yeah, I think if I were just to come at you with a cash offer it would I wouldn’t want to offend you in this one after looking just tell them what the cash offer is.
You’re not gonna offend me. Okay, so for a cost to buy a house 304
I’m secure Sam that’s what I’m thinking after running the numbers you got 480 Is the after repair value of what I think I can sell this for if I fix it, the landscaping do a complete rehab on the house. I have my hard money costs and I think it would take six months in total to rehab and list and since I’m, you know, I have connections with agents, I don’t pay to list my properties. I just have to pay for a buyer’s agent. So I got closing costs a $5,000 rehab after everything’s said and done, I’d make about 47k You know, 304 Is that something you’re open to or is that completely like not your Something you’re not interested in, oh, it’s not even close, okay, then then we kind of explore the different options of like the terms, you know, where I basically go in there and I can make you payments, fix up the property. And it would be cheaper than me getting hard money, right? And then I list it and sell it when it’s ready. That’s a potential option, or we partner on it. And we figure out, you know, how much money I bring to it, if we split it, or if I do the whole thing, how much you would walk away with? And would we split the profit above what we give you? You know, those are the options that I can see at the moment.
And the best option? I mean, I would consider some sort of seller financing potentially, you know, initial numbers 304. I mean, I’ve got offers for 10 cash. Yeah. So I mean, for me to carry it for a year, I’d have to be at least 450 to make it to make sense, which I understand completely.
Well, if you got 410, I would love to just be I guess be be available in chat, I would have to come up obviously off of three or four. But other than the cash offer, I know, you’re probably just going to explore what what those other guys offered, because they’re much higher. But if we were to flip it together, and I brought the rehab, if I brought the money, how would that look like to you? Like would you be able to continue to make the mortgage payments, and I just do the rehab?
And we kind of wish I could do something like that. Okay, run your numbers on this and then get back to me, we’ll go from there.
Sounds good. Is there any other scenarios or anything else you want to run by me? So I can leave either?
That would be the I mean, the cash offer? Offer doesn’t make sense, because I’ve got better offers on the table already. But as far as the maybe the rehab, that might make sense.
Okay. And last thing before I let you go, if we were if I come back, and we make sense to do the rehab, would you prefer doing that over cash offer for 10? If we were able to rehab it together? Or would you rather go to the cache?
And that would be I mean, again, it depends on the numbers. What’s the potential, you know, additional gain as opposed? I mean, if I can make an extra $2,000 No. I can make an extra 20,000. Yeah, then it’s something to look at. Does that make sense? 100%.
Yeah, you’re businessman. What makes sense?
Okay, okay, I run your numbers. Be in touch and we’ll go from there.
I appreciate your time. Thank you
No, I appreciate your thank you.
I want decent. So, pretty much what we have here is the cash offer doesn’t work. Novation doesn’t work, but he is potentially open to partnering. We’ll see I gotta run the numbers. See how it goes.