DFW REI Club

 Dallas/Fort Worth Real Estate Investor Club

Motivated seller with equity

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  • 24 Apr 2018 2:19 PM
    Message # 6118345

    This property came to me from a bird dog. Best I can tell, the owners have a small loan from 15 years ago and are very nearly 100% equity in the property. They are asking 50K and motivated to sell. I looked at it and I just can't see an upside that I am comfortable with. In my opinion the house needs a match. The lot size and shape is narrow and deep and surrounded by bigger lots, which in my opinion makes it equally undesirable. The neighborhood is good though, but difficult to find good quality comparable sales due to the nature of the construction going on there. It is semi rural and many lots are being combined and large remodels are going on. Anyway, I have decided that I don't want the property at any price since I can't see an exit strategy that I am comfortable with. Also, I have several other potentially more lucrative deals that are in the works and I am anticipating needing all my cash to close and rehab those deals. So I want to keep my powder dry for those eventualities. Perhaps one of the other members here can see value that I overlooked. Good luck!

    Owners: Jennifer Hale 817-247-1557 and Kevin Hale 817-946-0119

    Property: 409 Waynell St. Fort Worth TX 76108


    Last modified: 24 Apr 2018 4:07 PM | rockne ardoyno
  • 27 Apr 2018 12:22 PM
    Reply # 6123010 on 6118345

    Zillow Zestimate says it is $123K. Even the range says it is from $110K and upwards. Why is it that people are not excited for 50K?


  • 27 Apr 2018 3:56 PM
    Reply # 6123355 on 6118345

    Probably, the same reason I was not excited. ARV is difficult to determine, lot is defective, floor plan is awful, condition is awful, etc.

    Zillow and sites like it are prone to using bad statistical techniques on inaccurate data and producing grossly misleading values available to the public at the click of a finger. Since most people have little or no understanding of statistics they dont question the methods and are only too happy to consume this data. Specially when the data supports their foregone conclusion or their desires. If you are an investor you do so at your own peril.  

    At best, Zillow is a very blunt tool. But, if you are going to use it then you should understand it. Drill down into the ZESTIMATE. You will see that they have no sales data only two homes that are FOR SALE that are being used to estimate the value. Both of these might as well be the Taj Mahal when compared to this property and are on nice use-able lots. Tell Zillow that you are the owner and it will show you other homes that you can use to customize the way it is calculating the ESTIMATE. Of course the ZESTIMATED value of any property you choose for your new comps will be equally inaccurate unless you go and do the same process. 

    Anyway, bottom line is that unless the neighborhood you are looking at has lots of recent sales which are similar in vintage, construction, lot size, condition, and  interior finish, Zillow's estimated value is nothing but a Wild Ass Guess. 

    You have to dig in and do your own comps. If you have access to the MLS then that is the best way. But sometimes there is just no good sale data to be had. Then, you really have to be careful.

    This is one of those cases.

    Last modified: 27 Apr 2018 4:18 PM | rockne ardoyno
  • 29 Apr 2018 11:42 PM
    Reply # 6125720 on 6118345

    I would be interested. Please message me. I think i May have some people for it. 

  • 01 May 2018 12:44 PM
    Reply # 6128171 on 6118345

    Hi rockne ardoyno, nice explanation on the Zillow estimate. Totally get your feelings on how impersonal Zillow's estimates are. Can I get your number? I would appreciate if you can spare some time to talk to me.


    Hi Michale Lewis, can I get your number? I would like to talk to you to find out more about your requirements. 

  • 04 May 2018 10:23 AM
    Reply # 6133302 on 6118345

    Mike,

    I don't know how to PM you. The owners name, address, phone #, are in the original post though. Call them. Go see the property. See if you can make a deal. Like I said, I am not interested in the property. Otherwise, I would not have posed it an offered it to others. Maybe someone else can see value that I missed. Anyway, the owners I believe are very nearly 100% equity in the property per my conversations with them and the date on the DOT. They are highly motivated. The home is in an extreme state of disrepair. From my observations, their relationship is in the same condition as the house. Hence, the motivation. I feel that they would take any reasonable offer to be out of the house. I just don't like the property at any price.

    Best of luck!



    Last modified: 04 May 2018 10:23 AM | rockne ardoyno
  • 04 May 2018 10:28 AM
    Reply # 6133320 on 6118345


    Bala,

    MY contact information is:

    nardoyno@gmail.com

    817-239-1433


    Last modified: 04 May 2018 10:30 AM | rockne ardoyno
  • 05 May 2018 10:50 AM
    Reply # 6137210 on 6118345

    Personal cell. 817-210-8109

  • 07 May 2018 2:42 PM
    Reply # 6141966 on 6118345

    Hi fellow investors, I called the owners who referred me to the agent. Spoke to the agent and she said that the listing will be online by last Friday. I checked again and here is the listing. However the price is listed at 65K, which is far above the 50K that they were willing to sell it for. Please share any other thoughts about this that will help others. 

    https://www.zillow.com/homedetails/409-Waynell-St-Fort-Worth-TX-76108/29122076_zpid/


  • 09 May 2018 2:34 PM
    Reply # 6145940 on 6118345


    Well, just when I thought that the property could't be any less attractive, apparently they found a way to do so. I guess after I declined to make an offer, they thought an agent could work some magic. Anyway, no bank will lend on this property. They will have to owner finance it or find someone with cash that wants it. 

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