The life and times of an Arizona Investor

This will be my personal journal to document my failures and successes during my real estate experiences in Arizona. All stories, thoughts, and successes will be documented..

Monday, March 21, 2005

Answering Shaun's questions.

I appreciate shuan's questions and here's some responses. Shaun got me thinking about this one again so I looked at the MLS. Boy was I surprised! 5 properties 1100-1500 sqft houses selling for 135k-150k! This one is 1500 sqft.

There was alot of pictures and all of these houses are in top selling conditions. Some had new flooring and kitchens. This house is a rental so its beat down a little, but mostly cosmetic.

Here 's the answers to your questions Shaun.

1) Can you sell this deal to someone else? Absolutely, I was telling him that I would touch bases with him on Wednesday to give me time to either birddog it out to someone else or assign it.

2) What if you sell without a Realtor? I could, however, not having the visibility of the MLS filters out a lot of potential buyers. If I want to sell quickly, I would want to use a realtor for maximum results.

3) You've already done the hard work of getting the seller to agree to a subject-to deal. Why drop this now? I agree, if I can't use the lead , than I try and get a referral fee.

4) With the mortgage, fees, and repairs, the total debt is 109K. 6% commission on $125K is another 7.5K, for a total of $116,500. You've got $9.5K cushion in there, or $14.5K if you sell for the higher price. I need to add some attorney fees for land trust, holding costs, and there will be some closing costs (title report etc..) in addition to commision. IF I could sell the house for 125k than I could make 5k if everything goes perfect.

5) What's the monthly mortgage payment? $1180 PITI Monthly rent is $875

6) How soon can he move out? What's the average time to sell in the neighborhood? VACANT! It was a rental. I don't know the average time to sell in the neighborhood, I need to find out.

7) You could probably make at least $5,000 on this, easy. Assuming a 125k sales and everything is perfect, than 5k is obtainable.

Now, if I can sell this thing for 130k confidently, than I am in better shape. Based on the MLS comps, I should be able to do this.

I'm going to bring my handyman (fellow investor) to check a few things out. If good, I'm going to pull the trigger.
|| Bginvestor, 9:49 AM


And don't forget to add in my consulting fee for making you look at this deal again :-)
Blogger Shaun, at 1:08 PM  

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