DFW REI Club

 Dallas/Fort Worth Real Estate Investor Club

Why is this not snapped up?

  • 10 Apr 2018 9:52 PM
    Message # 6082865

    I came across this incredible deal and wondering why no wholesaler is not touching this property? Any insights? Feedback to this post would be extremely helpful for new investors like me as to what to look for in such properties.

    https://www.myhousedeals.com/investment-property/paris-tx/reo-fix-flip-rent-deal-1105427

    Regards.

  • 11 Apr 2018 6:54 AM
    Reply # 6094312 on 6082865

    I can't see the pictures without creating a account so I'm just guessing here. It's in the middle of no where, hard to sell or rent.  If it only needs $5,000 in repairs why are they selling it for 12k and its worth 97k?  If it's that good of shape then a realtor should list it.  Never seen a wholesale property that only needs 5k in repairs, 1455 sq ft house paint inside and out would cost 5k, flooring another 2.5k to 4k, lights 1k, appliances 1.5k, ect... If its a trailer home very hard to get a note on it. When starting out, buy houses in area you are familiar with and close to where you live. 

    Hope that helps some.

    Tim

  • 11 Apr 2018 7:00 AM
    Reply # 6094313 on 6082865

    my 2cents worth

    1) it's in Paris -who is buying homes in Paris?   Easy to buy, hard to sell is a good thing to keep in mind.

    2) any home selling for $12,000 in today's market has a 99.99% chance of being an old home with tons and tons of work to be done.  $5,000 in repair ??  They probably left a zero off.

    3) they are basically selling for free and giving away $80,000 in profit ?  

  • 11 Apr 2018 9:27 AM
    Reply # 6094543 on 6082865

    Thanks Tim & Kevin, for your responses. I was thinking the .92 acres alone is worth the money, and I once drove through Paris and thought it was a decent small town. As mentioned in your responses, location is the key and buying in places we know makes more sense than anything else. Who would give up such a big profit and sell it cheap? Raises red flag, but wholesale is all about that, right?

    Appreciate your responses. 

    Regards.

  • 11 Apr 2018 9:41 AM
    Reply # 6094579 on 6082865

    The property is shown on Zillow with pictures.

    812 County Road 22950,Paris, TX 75460

    3 beds 2 baths 1,455 sqft

    It's a little old pier and beam, wood siding, fixer upper in the middle of nowhere. I can tell from the pictures it needs more than $5K in cosmetics. Roof is way past replacing. Roof lines are not straight probably indicating that it needs some foundation or structural work. 

    I think it would be hard to determine the ARV for such a property due to the remote location and probable lack of good comparable sales. Also, after repairs, finding a retail buyer that finds such a property appealing is less than a certainty. In the event such a buyer was eventually identified, I fear that their means of purchasing the property would also probably be less than certain. 

    Bottom line, I think that anyone purchasing such a property at any price would have a high probability of becoming a motivated seller themselves in due order.


    Last modified: 11 Apr 2018 9:45 AM | rockne ardoyno
  • 12 Apr 2018 1:29 PM
    Reply # 6096809 on 6082865

    Maybe because it stinks. I hate that website, I found anything on there is from professional wholesalers who jack up the ARV and lowball the repairs, and you risk your $5k non refundable deposit as you can't do an inspection and get your money back if you find something.

    Also, If the premium members passed, that's a warning. Its also from 1920, so if you were there last weekend, Blake Johnson went over costs and stuff he is finding. First,  you need to rewire & new panel, about $10k. Then you need to replumb the entire house, another $8-10k, If you need a roof, it could be $5-8k, it most likely will need windows, and foundation work. Then you got about $20k in cosmetics, so there is little to no chance you will make a dime. 

    And Rockne & Kevin have great input also. You need to find your own deals. Good luck!


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