Day 51 – Deals, Deals, Deals…
Today is Day 51 in our drive for $60,000 in 60 days through real estate investing. Over the last couple days we have come across three new deals, and we are working through our analysis of these properties.
West Bloomfield Ranch
We have submitted an informal offer through email on this property, but it seems to be much lower than what the seller is looking for. We are discussing our selection of comparables with the seller and they have brought up some good points about our comp selection, so we are going to look at this a little more closely and see if it makes sense to come up on our offer price. This is strictly a numbers game, and if the numbers don’t make sense, we won’t be coming up on our offer price…we will see…
Sylvan Lake Ranch
We have done the analysis on this property, and there really just isn’t enough equity in the property to be able to wholesale it, so we are going to offer the potential to lease option the property. With this, we can offer a full price offer to the seller, but we will lease the property from them for the first 3-5 years. That way they will be getting a monthly cashflow from the property, and we will be building up credits towards the down payment on the property. In 3-5 years, we will execute the final sale. This is beneficial for the seller because they will get cashflow, and they will receive their full asking price. It is beneficial for us because we will find a tenant for the property that will pay a little bit more in rent each month than what the seller is charging us, and we will give them an option price just a little bit higher than what the seller is charging us. Therefore, we too will make cashflow during the 3-5 years, and we will make a profit on the back-end. We will see how this goes, it is really up to the seller as to whether they want to get into this kind of arrangement or not.
We have completed our analysis on this property, and we will be submitting a verbal offer to them today. Our offer will be low because we plan to try to wholesale the property, so we will see what they say. The property does need quite a bit of work, but it would make a great rental property if it were fixed up. We will see how this one goes.
We are working with our hard money lender to finalize the closing date on this property. Right now we are trying to get it setup for August 24th.
We have another showing tonight with a buyer that has given us a verbal cash offer on the property. Of course we have two land contract offers on the table right now, but we are leaning towards the cash offer even though it is lower to avoid the risks involved with the land contract. We will see how this goes tonight.
That’s about it for now…lots of stuff going on!!!