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How would to fasten the plywood down? I remember watching one of the Steve Cook DVDs and he mentioned something about pumping mud underneat the floor. Mud jacking or something like that. You might want to try the boards at www.flippinghomes.com. Very helpful sight with a lot of flippers on it.

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No, not yet. I stuck a sign in the windows while I hammer out the details on the adjacent lot. I just got another call on it this morning. I contacted an attorney to help in my battle for the extra lot as well. I think I'll get that too, but I've never dealt with the legal system before so I am not getting my hopes up. I have to show it at 4:00 today so you never know.

Update?

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No, not yet. I stuck a sign in the windows while I hammer out the details on the adjacent lot. I just got another call on it this morning. I contacted an attorney to help in my battle for the extra lot as well. I think I'll get that too, but I've never dealt with the legal system before so I am not getting my hopes up. I have to show it at 4:00 today so you never know.

Update?
Haven't sold it yet. Going to tear the roof off on Monday and get started on the rehab. Still fighting for the other lot. I see my attorney on Thursday. I'll post up something then. All in all, I am learning a lot and will make some amount of money.

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Here's my current situation. I'd appreciate all expert opinions on this. Here's my 4-plex listing..

I've listed this with a realtor, and the contract is up at the end of June. The basics are this : It pulls in $1,450/month in rents. There's about $200/month in utility expenses. Property taxes run a little under $600/year and insurance is also a little under $600/year. It's a fairly profitable rental property, it's just in an older part of town in St. Joseph, Missouri (about an hour north of Kansas City, population of roughly 80,000).

We originally listed the property at $110,000, and I agreed to lower it because the realtor said they supposedly had people interested "at the $100,000 price point". So I agreed to lower the price to $99,900 to attract more interest, but lo and behold there have been no serious offers come in.

So I have some questions for the experts here on what to do. If the property doesn't sell by the end of June, I'm planning on interviewing other realtors to see who to list my property with. I'm obviously not happy with my current realtors lack of productivity, and I'd naturally like to sell my property for the highest price possible. It's not a situation where I have to unload the property or anything - I'm just looking to get the equity out of that property and use it for improvements on my home. So given that info, what kind of questions should I ask the realtors I'm interviewing? And what kind of actions would you recommend to increase the selling price but also get the property to sell in a timely manner?

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Here's my current situation. I'd appreciate all expert opinions on this. Here's my 4-plex listing..

I've listed this with a realtor, and the contract is up at the end of June. The basics are this : It pulls in $1,450/month in rents. There's about $200/month in utility expenses. Property taxes run a little under $600/year and insurance is also a little under $600/year. It's a fairly profitable rental property, it's just in an older part of town in St. Joseph, Missouri (about an hour north of Kansas City, population of roughly 80,000).

We originally listed the property at $110,000, and I agreed to lower it because the realtor said they supposedly had people interested "at the $100,000 price point". So I agreed to lower the price to $99,900 to attract more interest, but lo and behold there have been no serious offers come in.

So I have some questions for the experts here on what to do. If the property doesn't sell by the end of June, I'm planning on interviewing other realtors to see who to list my property with. I'm obviously not happy with my current realtors lack of productivity, and I'd naturally like to sell my property for the highest price possible. It's not a situation where I have to unload the property or anything - I'm just looking to get the equity out of that property and use it for improvements on my home. So given that info, what kind of questions should I ask the realtors I'm interviewing? And what kind of actions would you recommend to increase the selling price but also get the property to sell in a timely manner?

Why on earth are you getting rid of a cash cow like that?

$13800 a year after the expenses you mentioned. At 7% with nothing down the carrying cost is $7000. They'd be lined up around the block around here to buy that. That unit should be worth about $125K.

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Here's my current situation. I'd appreciate all expert opinions on this. Here's my 4-plex listing..

I've listed this with a realtor, and the contract is up at the end of June. The basics are this : It pulls in $1,450/month in rents. There's about $200/month in utility expenses. Property taxes run a little under $600/year and insurance is also a little under $600/year. It's a fairly profitable rental property, it's just in an older part of town in St. Joseph, Missouri (about an hour north of Kansas City, population of roughly 80,000).

We originally listed the property at $110,000, and I agreed to lower it because the realtor said they supposedly had people interested "at the $100,000 price point". So I agreed to lower the price to $99,900 to attract more interest, but lo and behold there have been no serious offers come in.

So I have some questions for the experts here on what to do. If the property doesn't sell by the end of June, I'm planning on interviewing other realtors to see who to list my property with. I'm obviously not happy with my current realtors lack of productivity, and I'd naturally like to sell my property for the highest price possible. It's not a situation where I have to unload the property or anything - I'm just looking to get the equity out of that property and use it for improvements on my home. So given that info, what kind of questions should I ask the realtors I'm interviewing? And what kind of actions would you recommend to increase the selling price but also get the property to sell in a timely manner?

Why on earth are you getting rid of a cash cow like that?

$13800 a year after the expenses you mentioned. At 7% with nothing down the carrying cost is $7000. They'd be lined up around the block around here to buy that. That unit should be worth about $125K.

Well, there are several reasons. For one, I want to cash out the equity that I've got in it and use it for improvements on my own home. Another is that I live about 90 minutes away from there, and my dad has been the Property Manager since I bought it. But his fiancee died last year, and he doesn't really want to do it anymore. I could hire a property management company to run it, but I'd rather find other properties and fix them up and re-sell them. That's what I really love to do. I just took on this 4-plex because it was such a great opportunity. When I bought it, the landlord paid for gas to heat all of the units, and the place had these ancient gravity furnaces - needless to say, I had $900+/month gas bills the first winter I owned it. So we bought new furnaces, re-did the gas lines and had new meters dropped in so the tenants paid their own gas bills for heat (in the lower 2 units), and converted the upper two units to all electric. Now that we've got it to the point where it's a profitable rental property, I want to cash out and move on.

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No, not yet. I stuck a sign in the windows while I hammer out the details on the adjacent lot. I just got another call on it this morning. I contacted an attorney to help in my battle for the extra lot as well. I think I'll get that too, but I've never dealt with the legal system before so I am not getting my hopes up. I have to show it at 4:00 today so you never know.

Update?
Haven't sold it yet. Going to tear the roof off on Monday and get started on the rehab. Still fighting for the other lot. I see my attorney on Thursday. I'll post up something then. All in all, I am learning a lot and will make some amount of money.
Ok, here is a real update on the property. The bank will be signing over the lot to me. They screwed up and my attorney basically told me that if they had any case at all, they'd fight me for it but they don't have a leg to stand on. So now I just need to have the deed signed over to me. So basically I got a 2fer on the deal. I got a home worth about 20k and a lot worth about 15k for a total of 19k. Not too shabby for a first investment property. I am going down to the city to look into whether I am able to build a self-storage facility on the lot. There is one about 4 blocks away from it that was built on the site after a duplex burned down. So prospects look good on that as well. I start hammering nails on the flip home Monday. :crazy:

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Here's my current situation. I'd appreciate all expert opinions on this. Here's my 4-plex listing..

I've listed this with a realtor, and the contract is up at the end of June. The basics are this : It pulls in $1,450/month in rents. There's about $200/month in utility expenses. Property taxes run a little under $600/year and insurance is also a little under $600/year. It's a fairly profitable rental property, it's just in an older part of town in St. Joseph, Missouri (about an hour north of Kansas City, population of roughly 80,000).

We originally listed the property at $110,000, and I agreed to lower it because the realtor said they supposedly had people interested "at the $100,000 price point". So I agreed to lower the price to $99,900 to attract more interest, but lo and behold there have been no serious offers come in.

So I have some questions for the experts here on what to do. If the property doesn't sell by the end of June, I'm planning on interviewing other realtors to see who to list my property with. I'm obviously not happy with my current realtors lack of productivity, and I'd naturally like to sell my property for the highest price possible. It's not a situation where I have to unload the property or anything - I'm just looking to get the equity out of that property and use it for improvements on my home. So given that info, what kind of questions should I ask the realtors I'm interviewing? And what kind of actions would you recommend to increase the selling price but also get the property to sell in a timely manner?

Why on earth are you getting rid of a cash cow like that?

$13800 a year after the expenses you mentioned. At 7% with nothing down the carrying cost is $7000. They'd be lined up around the block around here to buy that. That unit should be worth about $125K.

Well, there are several reasons. For one, I want to cash out the equity that I've got in it and use it for improvements on my own home. Another is that I live about 90 minutes away from there, and my dad has been the Property Manager since I bought it. But his fiancee died last year, and he doesn't really want to do it anymore. I could hire a property management company to run it, but I'd rather find other properties and fix them up and re-sell them. That's what I really love to do. I just took on this 4-plex because it was such a great opportunity. When I bought it, the landlord paid for gas to heat all of the units, and the place had these ancient gravity furnaces - needless to say, I had $900+/month gas bills the first winter I owned it. So we bought new furnaces, re-did the gas lines and had new meters dropped in so the tenants paid their own gas bills for heat (in the lower 2 units), and converted the upper two units to all electric. Now that we've got it to the point where it's a profitable rental property, I want to cash out and move on.
Bump for the afternoon crowd.

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No, not yet. I stuck a sign in the windows while I hammer out the details on the adjacent lot. I just got another call on it this morning. I contacted an attorney to help in my battle for the extra lot as well. I think I'll get that too, but I've never dealt with the legal system before so I am not getting my hopes up. I have to show it at 4:00 today so you never know.

Update?
Haven't sold it yet. Going to tear the roof off on Monday and get started on the rehab. Still fighting for the other lot. I see my attorney on Thursday. I'll post up something then. All in all, I am learning a lot and will make some amount of money.
Ok, here is a real update on the property. The bank will be signing over the lot to me. They screwed up and my attorney basically told me that if they had any case at all, they'd fight me for it but they don't have a leg to stand on. So now I just need to have the deed signed over to me. So basically I got a 2fer on the deal. I got a home worth about 20k and a lot worth about 15k for a total of 19k. Not too shabby for a first investment property. I am going down to the city to look into whether I am able to build a self-storage facility on the lot. There is one about 4 blocks away from it that was built on the site after a duplex burned down. So prospects look good on that as well. I start hammering nails on the flip home Monday. :headbang:
Awesome! I'm so intrigued by these self storage facilities. Seem like such a gold mine. Just wish my town wasn't flooded with them.How much have you researched them? Do you know an appx cost to put one up?

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No, not yet. I stuck a sign in the windows while I hammer out the details on the adjacent lot. I just got another call on it this morning. I contacted an attorney to help in my battle for the extra lot as well. I think I'll get that too, but I've never dealt with the legal system before so I am not getting my hopes up. I have to show it at 4:00 today so you never know.

Update?
Haven't sold it yet. Going to tear the roof off on Monday and get started on the rehab. Still fighting for the other lot. I see my attorney on Thursday. I'll post up something then. All in all, I am learning a lot and will make some amount of money.
Ok, here is a real update on the property. The bank will be signing over the lot to me. They screwed up and my attorney basically told me that if they had any case at all, they'd fight me for it but they don't have a leg to stand on. So now I just need to have the deed signed over to me. So basically I got a 2fer on the deal. I got a home worth about 20k and a lot worth about 15k for a total of 19k. Not too shabby for a first investment property. I am going down to the city to look into whether I am able to build a self-storage facility on the lot. There is one about 4 blocks away from it that was built on the site after a duplex burned down. So prospects look good on that as well. I start hammering nails on the flip home Monday. :shrug:
Awesome! I'm so intrigued by these self storage facilities. Seem like such a gold mine. Just wish my town wasn't flooded with them.How much have you researched them? Do you know an appx cost to put one up?
I know Jeff Pasquino is familiar with them from earlier in this thread. I am going to research them thoroughly for a services marketing class I am enrolled in. I'll post my findings. Jeff probably knows more off the top of his head than I will learn from all my research though. I think every town is flooded with them. I'd think the key is not worrying about the crowding so much as worrying about how to get your's full. The difference between 1000 and 1020 storage units available in a town is negligible. That is why they keep going up. I don't ever recall one being torn down though, do you? Gold mine is right. :shrug:

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Just Found this article

Basics for the First-Time Builder

An overview of the feasibility, design and construction processes

Donna May

09/01/2007

My grandparents traveled to their home in South Dakota in a covered wagon, but my daughter has never seen a day when a cell phone was not readily available to call anywhere on the planet. What a dynamic world we live in!

Even the self-storage industry has experienced generations of change. Though it remains a relatively austere business venture, the complexities of building in today’s market require knowledge of the procedure and players involved in bringing a project to fruition. Delving into self-storage for the first time can be overwhelming, but an overview of the process will help keep things in perspective.

Five Phases

Most construction projects have the same basic components, follow a particular flow of progression, and incorporate experts to work with each other and the owner in pre-defined capacities. Once that concept is set in the mind, it becomes easier to envision your own project in process.

There are five phases in the life of a self-storage venture: feasibility, design, construction, operation and exit. Development encompasses the first three. The developer may be the owner or professionals hired by the owner to oversee the project.

The processes of feasibility, design and construction get the business ready to go. Feasibility concerns the determination of whether the business can be viable in the desired location. Design envisions the product and brings together the necessary talent to create a plan for building it. Construction actually builds it.

Although there are specific disciplines involved in each phase, there are few definitive separations in the structure. For example, it’s common for the civil engineer, who is an integral part of the feasibility study, to report to the architect, who may also be responsible for the construction contractor’s compliance to plans. In our industry, the general contractor often assumes responsibility for design and construction, reporting directly to the developer or owner.

During his initial venture, an owner may not have a complete understanding of everything that needs to take place or who does what to make it happen. His goal, then, is to possess a solid understanding of the elements in each phase and the progression of events, then to select service providers with the qualifications and experience required to cover all the bases. The relationship between the owner and the professionals he chooses will vary according to the skills and resources each brings to the table.

Feasibility

The feasibility study is a discovery phase to find the true costs of pursuing the project and verify that anticipated income makes it worthwhile to move forward. These duties can be conducted by the owner or hired experts; most frequently, it will be a combination of both.

In assessing potential income, the feasibility study anticipates the type of facility the community is likely to need and the rates customers will be willing to pay. This is determined by analyzing the environment in which the business will operate. Some key factors are land size and location, population density, and demographics such as age, income and travel patterns. These types of considerations in addition to information regarding the competition—proximity, square footage, unit mix, occupancy and rental rates—indicate the rentable square footage and unit mix that will be most profitable.

This hypothesis regarding optimum square footage and unit mix is the starting point to designing the project for maximum potential. A simple chart including the number of each type of unit and its rental rate can be used to determine gross income. A 10 percent vacancy allowance for turnover is typically deducted in financial calculations. Rents plus anticipated ancillary profits (retails sales, etc.) are the basis for income estimates.

Determination of project costs starts with the land and all expenses associated with its use. Back in the “old” days, land, site work, design and construction presented a pretty close estimate of total project cost. Alas, this is no longer true.

Now there can be tens of thousands of dollars required for surveys, studies and fees. For example, an endangered turtle species (gopher turtle) was found on one of my company’s construction sites in Florida. This necessitated a $1,500 survey of turtle territory and a $3,369 permit fee. The turtle was never relocated; fees were just assessed. (For $4,869, the turtle should have received his own private condo, but I digress.)

Miscellaneous expenses such as turtle fees, city fees (zoning, building permits, tree mitigation, etc.), county fees (flood plane, school, fire, road, environmental impact, etc.), jurisdictional fees (Municipal Utilities Districts) and state fees (Department of Transportation permit), all impact the project price tag. Local civil engineers or other professionals are frequently employed to determine who has jurisdictional authority over the property and what fees may be assessed.

The third substantial cost associated with land is site work. Tying into existing sewer, water, gas and fire lines, importing and exporting fill, rock excavation, soil conditions, underground springs, and hitherto undiscovered dump sites all fall within the parameters of site work and can be very costly. This is why contractors quote “slab and above” prices.

The developer must also estimate building costs, startup costs in opening the business, operating expenses, and cash to carry the business until it is self-supporting. These are often part of a bank package to assist the owner in obtaining financing. Developer’s fees are usually contracted separately and negotiated with the owner based on the extent of services required.

Design

All expenses must be calculated up front to determine whether the income the owner expects is sufficient to carry the burden of building and operating the project and generate sufficient profit. If the answer is “yes,” the owner moves forward with design.

Design has already been a part of the development process during the incorporation of the desired unit mix into the style of building that works best on the land. From this point, it brings together all the players who work together to create the project. Design fees can be contracted separately by the owner or included in the developer’s or general contractor’s contract. The architect collaborates with the developer or general contractor to design buildings and layout in accordance with the owner’s wishes. He generally oversees other design professionals too.

Typical design plans include:

* Site plan

* Civil engineering

* Architectural engineering

* Structural engineering

* MEPs

* Landscape design

The site plan is an overview showing how the project lies on the land and is drawn by the architect. It illustrates boundaries, adjacent streets, buildings, drives, etc. The developer, general contractor or architect will generally hire a local civil engineer, because he will be familiar with governing authorities and restrictions on land use. He will be responsible for the placement of utilities, building setbacks, zoning, easements, ingress and egress, land elevations, watershed, etc.

In addition to the site plan, the architecturals will include floor plans displaying the walls and partitions for each floor; elevations of exterior faces (what buildings will look like); cross-sections, to clearly indicate floor levels and details regarding footings, foundation, walls, floors, ceilings and roof construction; and large-scale drawings exhibiting construction details.

The structural engineer details the proper material allowances to accommodate vertical loads and lateral stresses in the building. He makes sure the design of the building, materials used and the way they are put together is strong enough to withstand the weight of any use they may be put to, and all internal and external forces that may be applied to the building.

MEPs refer to mechanical (air-conditioning), electrical and plumbing drawings. These are often drawn by one engineer. In smaller projects, construction or shop drawings provided by individual trades may serve instead.

Landscape drawings may or may not be required. They specify ground coverage and plant materials as dictated by local ordinances. They are typically provided by the landscaping contractor.

The general contractor or architect coordinates all necessary approvals from governing authorities and ensures necessary revisions are carried through consistently at all levels.

Construction

Plans in hand, the construction contractor takes over. A general contractor (GC) is responsible for construction of the project in accordance with design specifications. It may provide labor and materials itself, use subcontractors and vendors, or use some combination of both. The two most important functions the GC provides are construction coordination and quality control. It’s the GC that weaves all of the workmanship provided by trades into the completed project.

As a rule, the GC has a preliminary budget based on estimated costs. It then bids out the project to qualified subcontractors and vendors and selects those that will work on the job, contracting with them directly for the work. On a simple self-storage project, trades and costs may include:

* Architecture and engineering

* Concrete (horizontal and vertical)

* Detention/retention ponds

* Door and hallway systems

* Electrical systems

* Erosion control

* Excavation and grading

* Fencing

* Fire protection

* Masonry

* Mechanical systems

* Office finish-out

* Painting

* Paving

* Permits, fees, testing

* Plumbing

* Retaining walls

* Roofing

* Security systems

* Signage

* Steel building systems

* Supervision, office trailer

* Thermal/moisture protection

* Utilities

The GC also creates the job schedule that indicates the path of construction, what trades follow each other, and how to complete the project in the shortest possible time. It is responsible for quality control of all trades and has fiscal responsibility for the project.

Typically, the GC bills the owner once each month on documents approved by American Institute of Architects, which detail the progress of the job. The owner then submits billings to the institution financing the project. That institution verifies progress as detailed on the AIA draw documents before issuing payment. The GC receives payment and then pays all subcontractors and invoices for work completed to date. It is also responsible for ensuring his subcontractors pay their job-related invoices and expenses so there is no outstanding debt against the project.

In today’s service-provider market, the trend is for everybody to offer everything. Project development is complex, and first-time builders should not hesitate to ask probing questions and expect straightforward, solid answers. Be armed with a basic understanding of the elements included in a project package and take time to investigate the qualifications of the professionals involved. This will allow you to proceed with confidence in assembling a team that complements your own skills and resources to create the project of your choice.

Donna May is president of Cross Metal Buildings, a member of The Parham Cos., which specializes in assisting first-time builders, providing cost-effective, high-quality commercial, agricultural and self-storage buildings throughout the Southern United States. Ms. May is the former president of Joshua Management Co. and a commercial real estate broker. She has been a partner in 11 start-up self-storage projects totaling more than 703,500 square feet. For information, call 210.477.1260; e-mail ask@crossmb.com ; visit

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####### Countrywide swiped $5k from a HELOC this month which included the upcoming tax payment. I'm clearing out the others tomorrow and moving the funds elsewhere. I'm then calling my mortgage broker and cutting off all referels unless she fixes this. From there I'm taking my seven loans and going shopping.

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####### Countrywide swiped $5k from a HELOC this month which included the upcoming tax payment. I'm clearing out the others tomorrow and moving the funds elsewhere. I'm then calling my mortgage broker and cutting off all referels unless she fixes this. From there I'm taking my seven loans and going shopping.

What do you mean by swiped? They stole it? Or they reduced your credit limit? :yes:

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Hey guys. Very interesting stuff here.

What are your thoughts of taking advantage of the market and buying land in a development? I own a house in Exeter, PA (in between Reading and King of Prussia). We just had our 3rd child and house is starting to get cramped, so my thought was to try to get a deal on land today, so in the future I can build a bigger house. We are not ready to move and certainly can not afford two mortgages considering in my development there are at least 6 houses for sale.

Currently in this area most $200k-$250K houses are selling, but anything is not as there are not as many buyers. Outside of the people coming from King of Prussia or NY/NJ.

We are looking in a somewhat small development around 20 houses, but most are out of our price range. That said, there are houses for sale in the neighborhood and not getting any sniffs one of them just dropped their price by $100K. Clearly, no one is going to build right now as I assume most people would need to see their house first and that is not really happening.

Currently, they have two lots left 1+ acre each and the developer is "asking" for $120k and $170k for each. Given the fact no one is building right now and the higher end houses are not selling I am thinking/hoping to get a lot on the cheap.

Obviously, it all depends on how desperate they are to sell, but do you think offering something like $50k for the $170k lot however I was thinking about offering a developer option. My idea is if the developer finds a buyer who is going to build before I sign a contract to build he has the right to buy it back for something like $100k or $120k. That should make it a win/win for both of us (more win for me though).

I am sure they will say no but it does not hurt to try right?

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####### Countrywide swiped $5k from a HELOC this month which included the upcoming tax payment. I'm clearing out the others tomorrow and moving the funds elsewhere. I'm then calling my mortgage broker and cutting off all referels unless she fixes this. From there I'm taking my seven loans and going shopping.

What do you mean by swiped? They stole it? Or they reduced your credit limit? :lmao:
Depends on your perspective...that was my self escorw for this years taxes.

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####### Countrywide swiped $5k from a HELOC this month which included the upcoming tax payment. I'm clearing out the others tomorrow and moving the funds elsewhere. I'm then calling my mortgage broker and cutting off all referels unless she fixes this. From there I'm taking my seven loans and going shopping.

What do you mean by swiped? They stole it? Or they reduced your credit limit? :popcorn:
Depends on your perspective...that was my self escorw for this years taxes.
Still not following. But I can assume by your vagueness that they didn't actually steal anything from you.

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You may have seen my other threads/posts where I've mentioned that I'm moving to the Twin Cities area this summer. Since it would probably be better to line up a job first before really hunting for a house, I've only been casually looking.

Anyhow, I found what appears to be a good prospect on ziprealty.com. Looks to be a nice neighborhood, in a good school district, and close to the schools my kids would need (middle and high school). True, my view is from a 1000 miles away, viewed through the internet, via a handful of pics and a school ranking and other websites. I know I would need to spend time looking it over in person, but for the time being, let's play "what if".

It's been on the market for 12.5 months. Many of the other properties in a similar situation will mention if they have freeze damage, etc, but I can't find anything obviously wrong with this place. When I registered to use ziprealty's searches, I was "assigned" a realtor, and he's been passively prospecting, as I would expect. I've mainly been ignoring his emails, as I wasn't ready to actively search just yet, but I did contact him last week to see if he could find out "what was wrong with it". About all he could offer was perhaps because it's a slow market or perhaps because it was on a busy street. He had some other showings in the area last weekend and he said he'd check it out, but I haven't heard anything further. I just now sent a followup email to see if he found anything.

In the past 9.5 months, the price has been dropped nine times from $257,300 to $205,000 ($52k, ~20% :o ), with the final $10k drop occurring this past Saturday. Ziprealty includes a page for an "estimated value", and uses Zillow and Cyberhomes. Zillow shows an estimate of $239,500 (range $210-246k), while Cyberhomes shows $244,500 ($220-281k). I know these numbers probably have no basis in reality, but I'll include them for discussion purposes.

My main question is assuming that we find out that there's nothing really wrong with the house (it's just truly a slow market) and I can buy it for a song, how low should I/could I initially offer? If they're lowering the price on a fairly regular basis (once per month August-December, three times in March, once in May), it sounds like they're actively trying to sell, and probably reaching the point of desperation. You be William Shatner, and pretend I'm visiting your PricelineRealty.com website. :D

As a side question, what can you think of that might be wrong with it (i.e., what sort of questions should I be asking to bring out this mystery)?? Like I said, it appears to be in a nice neighborhood, so it doesn't seem to be a crackhouse with all the copper wiring pulled out. :shrug:

TIA

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Housing: It'll get worse

By Les Christie, CNNMoney.com staff writer

Jun 12th, 2008

Hard hit cities like Sacramento, Phoenix and Las Vegas are set for more steep losses. Some real estate experts are bracing for price drops of as much as 50%.

NEW YORK (CNNMoney.com) -- With home prices plunging by more than 30% in some markets, bargain-hunters are ready to pounce.

But it may pay for buyers to wait. Many housing experts say that the worst-hit metro areas have even farther to fall, and could see total drops of as much as 50%.

"The housing boom was unprecedented in U.S. history," said Michael Youngblood, a portfolio analyst with FBR Investment Management, "and the correction will be as well."

High-end housing crunch, 90210

Many erstwhile bubble cities have sustained particularly brutal hits. The median- price of a home in Sacramento, Calif. was down 35% during the three months ended May 31 compared to the same period last year, according to the real estate web site Trulia.com. In Riverside, Calif. prices fell 29%, while San Diego prices dropped 26%.

Smaller cities in California's Central Valley, such as Stockton (-39%), Modesto (-37%) and Bakersfield (-29%), also recorded steep declines.

Outside California, hard-hit markets include Phoenix (-18.8%), Las Vegas (-22%), West Palm Beach, Fla. (-32%) and Cape Coral, Fla. (-35%).

Youngblood expects that these markets will likely endure total price drops of 50% or more.

The smart money

Indeed, prices are falling faster and further than in any other post-war housing bust. During the bust in Austin, Tex., which started in 1986 and is one of the worst on record, prices fell 25%, according to Local Market Monitor, a financial data provider. And that cycle took four years to bottom out.

In other major downturns, prices in Los Angeles fell by 21% during a six-year period in the 1990s, and Honolulu home prices saw a decline of 16% in the five years starting in 1994.

Youngblood's forecast "is quite plausible," said Nicholas Perna, of the economic consulting firm Perna Associates. He finds it especially significant that the smart money, investors in the S&P Case/Shiller Home Price Index, are still buying futures as if they expect prices to continue to plummet.

The index, which tracks the sale price of specific homes as they are sold and resold over the years, is considered to be one of the most accurate home price indicators.

"The people who are putting their money where their mouths are," said Perna, "are betting on more losses."

Specifically, Case/Shiller investors are betting that Las Vegas prices will fall an additional 22% by November 2009. Los Angeles futures predict a further loss of 24.2% through November 2009, while investors expect to see Miami down another 21.6% by then.

These markets may have a hard time recovering because, according to Perna, people are afraid to buy right now, because they're concerned about over-paying. That helps explain why price depreciation seems to be accelerating.

"The most severe declines are happening right now," said Mark Zandi, chief economist for Moody's Economy.com.

Prices vs. wages

This correction was inevitable, in Youngblood's opinion; home price gains had simply out-paced income by far too much to be sustained.

Historically, home prices have averaged about four times wages. Whenever homes got significantly more expensive, people could not afford to buy and home prices fell back.

But local price-to-income ratios are still out of whack even after steep price declines, which means prices have further to fall. In Los Angeles, where the ratio peaked at 22.7, according to Youngblood, it's still in the high teens. Home prices would have to come down another 40% or so to get that ratio back into the single digits.

And it's not just the housing fundamentals that lead Youngblood to expect more drops; he also cites the local economic conditions.

"Bubble cities are now seeing fleeing employment conditions," he said. In Miami, the unemployment rate rose 34.3% between April 2007 and April 2008, according to Youngblood. And the job picture in California cities, where many jobs were housing related, has been even more disastrous.

Housing was a key economic engine for towns like Riverside, Stockton and Modesto during the boom, according to Zandi. Builders, real estate salespeople, mortgage brokers and lenders, and even retailers, like Home Depot (HD, Fortune 500) and Lowe's (LOW, Fortune 500), depended on growth in the sector.

"In all those deteriorating housing markets, it's a double hit," he said.

Ten of the 11 cities with the highest unemployment rates in the nation are now in central California, with El Centro , at 18.4% in April, leading the way. Other double-digit disaster areas were in Merced (12.3%), Yuba City (11.8%), Modesto (10.7%), Visalia (10.3%), Hanford (10.2%) and Fresno (10%).

Many of these cities are also among the leaders in foreclosure rates. As more foreclosed properties hit the market, prices are further depressed.

"[The price drops] reflect a wave of distressed sales of [bank-owned] properties and discouraged sellers," said Zandi

The brighter side

Not all analysts are pessimistic. Richard DeKaser, chief economist for National City Corp (NCC, Fortune 500) points out that, thanks to the price declines, the national market is the most affordable it's been in years.

With the national median price of a single family home at $204,229, mortgage rates around 6% and the average household earning nearly $50,000, the average home buyer spent about 23.2% of their income on housing during the first quarter of 2008. That's down from 2006, when homeowners spent an average of 29% of their income on housing.

Nariman Behravesh, an economist with Global Insight, says that while he expects home prices to stagnate for the next five years, Youngblood's 50% price decline forecast is "a little extreme."

But that target is realistic, Behravesh says, after taking inflation into account. In markets where prices have fallen 35% or more, and remain depressed through five years of 4% inflation, home prices in real dollars will absorb an additional 20%-plus hit. That would push price declines to over 50%.

Of course, there are plenty of wild cards that could affect home price trends, such as the election, Congressional legislation, unemployment, gas prices, and interest rates.

"This whole market is fraught with all sorts of implications," said Perna, "and it ain't over until it's over."

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Ok here is a problem I have on a house I am planning to flip (the house I bought and posted about earlier in the thread). The floor in the kitchen and bathroom sag. About 2 inches maybe over the length of the 10 foot floor. Can I just cut out the sub-floor, and sister 2x6 on either side of the sagging joists? Or could I just put the 2x6 next to the sagging joist and use it as a template to build a shim that would put me back to level on both?

I don't want to get into an expensive repair. Heck, I'll just leave it as is before I'll spend 1000 bucks on it. But I'd like to have it level if I can do it cheaply. I don't think it is anything other than my support posts being 120 years old that is causing the problem. I could buy posts and place them in there to stop more sagging but I am not interested in jacking the house up because it is a 2 story old house and I don't want to cause more hassle than it is worth. The sag would be right in the middle of the house the kitchen sags toward the wall and the bathroom sags toward the same spot on the other side of the same wall.

Does the shimming or sistering sound reasonable? Should I just leave it and try to install the cabinets over the top on the sagging floor?

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Looking for some guidance here, the situation:

I have to sell my house in the next year

There are 3 houses on my block that have gone up for sale recently. 2 of these are directly across the street from mine and are very comparable in lot size/square footage. They both have 3 bedrooms and 2 car garages. One of them has a pool. Mine has 4 bedrooms and a 3 car carport (or 2 cars and a boat) in the back.

All of our houses received less than 1 inch of water from Katrina and have been renovated since 2005. My renovations are a lot more modern (mainly due to our age compared to the owners of the other houses).

House 1

House 2

A few questions

Am I correct in thinking that its a good time to put my house up being that the two houses across the street are also up (people who came to e their house would see mine and be curious....)

I would like to attempt to sell by owner first (the other two houses are listed by agents)..however I'd likely be willing to pay 3% to a buyers agent.....would this be a wise move?

If I do sell by owner, how do I get comps to determine the pricing?

Edited by Tiger Fan

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Looking for some guidance here, the situation:

I have to sell my house in the next year

There are 3 houses on my block that have gone up for sale recently. 2 of these are directly across the street from mine and are very comparable in lot size/square footage. They both have 3 bedrooms and 2 car garages. One of them has a pool. Mine has 4 bedrooms and a 3 car carport (or 2 cars and a boat) in the back.

All of our houses received less than 1 inch of water from Katrina and have been renovated since 2005. My renovations are a lot more modern (mainly due to our age compared to the owners of the other houses).

House 1

House 2

A few questions

Am I correct in thinking that its a good time to put my house up being that the two houses across the street are also up (people who came to e their house would see mine and be curious....)

I would like to attempt to sell by owner first (the other two houses are listed by agents)..however I'd likely be willing to pay 3% to a buyers agent.....would this be a wise move?

If I do sell by owner, how do I get comps to determine the pricing?

Morning bump

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Looking for some guidance here, the situation:

I have to sell my house in the next year

There are 3 houses on my block that have gone up for sale recently. 2 of these are directly across the street from mine and are very comparable in lot size/square footage. They both have 3 bedrooms and 2 car garages. One of them has a pool. Mine has 4 bedrooms and a 3 car carport (or 2 cars and a boat) in the back.

All of our houses received less than 1 inch of water from Katrina and have been renovated since 2005. My renovations are a lot more modern (mainly due to our age compared to the owners of the other houses).

House 1

House 2

A few questions

Am I correct in thinking that its a good time to put my house up being that the two houses across the street are also up (people who came to e their house would see mine and be curious....)

I would like to attempt to sell by owner first (the other two houses are listed by agents)..however I'd likely be willing to pay 3% to a buyers agent.....would this be a wise move?

If I do sell by owner, how do I get comps to determine the pricing?

Morning bump
:shrug:

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Looking for some guidance here, the situation:

I have to sell my house in the next year

There are 3 houses on my block that have gone up for sale recently. 2 of these are directly across the street from mine and are very comparable in lot size/square footage. They both have 3 bedrooms and 2 car garages. One of them has a pool. Mine has 4 bedrooms and a 3 car carport (or 2 cars and a boat) in the back.

All of our houses received less than 1 inch of water from Katrina and have been renovated since 2005. My renovations are a lot more modern (mainly due to our age compared to the owners of the other houses).

House 1

House 2

A few questions

Am I correct in thinking that its a good time to put my house up being that the two houses across the street are also up (people who came to e their house would see mine and be curious....)

I would like to attempt to sell by owner first (the other two houses are listed by agents)..however I'd likely be willing to pay 3% to a buyers agent.....would this be a wise move?

If I do sell by owner, how do I get comps to determine the pricing?

Morning bump
:hophead:
I am by no means a real estate expert but I'll give your questions a shot.

1. You are correct in thinking that other people may be curious and want to check your house out when viewing the other 2 on your street. However, with the housing market the way it is, I think an argument could be made that now is not a good time to put your house up. Also 3 houses for sale in such close proximity to each other may raise red flags to potential buyers and why are these people trying to get out of the neighborhood.

2. Very wise move to offer to pay 3% for buyers agent. I offered this to buyers agents when we had our house near Pittsburgh for sale by owner. We were very lucky that the eventual buyers did not have an agent. I sent out a couple of feeler emails to local real estate agents asking if they had anyone who was interested in our area and to let them know about offering them the commission. I got a very cold response and I am not sure why.

3. In the county I used to live in, we had a real estate website where you could search the properties in the area and see when they were sold and for how much. Perhaps your area has something similar?

Good luck and hopefully others will check in and give you advice as well.

Edited by wefcpa

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Looking for some guidance here, the situation:

I have to sell my house in the next year

There are 3 houses on my block that have gone up for sale recently. 2 of these are directly across the street from mine and are very comparable in lot size/square footage. They both have 3 bedrooms and 2 car garages. One of them has a pool. Mine has 4 bedrooms and a 3 car carport (or 2 cars and a boat) in the back.

All of our houses received less than 1 inch of water from Katrina and have been renovated since 2005. My renovations are a lot more modern (mainly due to our age compared to the owners of the other houses).

House 1

House 2

A few questions

Am I correct in thinking that its a good time to put my house up being that the two houses across the street are also up (people who came to e their house would see mine and be curious....)

I would like to attempt to sell by owner first (the other two houses are listed by agents)..however I'd likely be willing to pay 3% to a buyers agent.....would this be a wise move?

If I do sell by owner, how do I get comps to determine the pricing?

Morning bump
:confused:
I am by no means a real estate expert but I'll give your questions a shot.

1. You are correct in thinking that other people may be curious and want to check your house out when viewing the other 2 on your street. However, with the housing market the way it is, I think an argument could be made that now is not a good time to put your house up. Also 3 houses for sale in such close proximity to each other may raise red flags to potential buyers and why are these people trying to get out of the neighborhood.

2. Very wise move to offer to pay 3% for buyers agent. I offered this to buyers agents when we had our house near Pittsburgh for sale by owner. We were very lucky that the eventual buyers did not have an agent. I sent out a couple of feeler emails to local real estate agents asking if they had anyone who was interested in our area and to let them know about offering them the commission. I got a very cold response and I am not sure why.

3. In the county I used to live in, we had a real estate website where you could search the properties in the area and see when they were sold and for how much. Perhaps your area has something similar?

Good luck and hopefully others will check in and give you advice as well.

Thanks for the feedback....I'll look into #3

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I'm considering a career change, and am thinking about becoming a realtor. What's typical take-home pay, assuming it's mostly commission-based, and assuming I'd be working for one of the "big boys" (Century21, Realty Executives, ZipRealty, etc) and not on my own? I.e., if I move a $100k house, I take home....what?

For the moment, let's leave out discussions that it's a down market, housing bubble, etc. I just want to know if this is something where I could earn $50-75-100k/yr (yes I know, with a lot of hard work), or would I be looking at 5-10yrs of $10-15k/yr before anything substantial comes along.

TIA

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I'm considering a career change, and am thinking about becoming a realtor. What's typical take-home pay, assuming it's mostly commission-based, and assuming I'd be working for one of the "big boys" (Century21, Realty Executives, ZipRealty, etc) and not on my own? I.e., if I move a $100k house, I take home....what?For the moment, let's leave out discussions that it's a down market, housing bubble, etc. I just want to know if this is something where I could earn $50-75-100k/yr (yes I know, with a lot of hard work), or would I be looking at 5-10yrs of $10-15k/yr before anything substantial comes along.TIA

Move a $100K house and you're looking at $3K which you'll split with your broker with you retaining 60-90%. The more you make, the bigger the commission split in your favor.Expect to make nothing the first 6-12 months. 1 in 2 are out of the business in 2 years. 10% make 90% of the income. In our office of thirty, ten will be gone in a year, ten will make < $25K, five will be around 50-75K, three around 100K, and two will make more than a quarter mill.Costs, dues, and fees are a killer. Better have $5-$10K set aside to get rolling.I personally don't sell and have some doubts about the long term model of this industry. Talk to cosjobs, he is a good source of information.

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Anyone know if it's a good time moving to Florida because I'm seriously considering it but I have no idea about the current market. I tried to find some stuff on the internet but that's all I could come up with about available Florida property and I have no idea if this site is any good. So if someone can recommend sites, books, whatever, I would be more than thankful.

Edited by Pete20

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Looking for some guidance here, the situation:

I have to sell my house in the next year

There are 3 houses on my block that have gone up for sale recently. 2 of these are directly across the street from mine and are very comparable in lot size/square footage. They both have 3 bedrooms and 2 car garages. One of them has a pool. Mine has 4 bedrooms and a 3 car carport (or 2 cars and a boat) in the back.

All of our houses received less than 1 inch of water from Katrina and have been renovated since 2005. My renovations are a lot more modern (mainly due to our age compared to the owners of the other houses).

House 1

House 2

A few questions

Am I correct in thinking that its a good time to put my house up being that the two houses across the street are also up (people who came to e their house would see mine and be curious....)

I would like to attempt to sell by owner first (the other two houses are listed by agents)..however I'd likely be willing to pay 3% to a buyers agent.....would this be a wise move?

If I do sell by owner, how do I get comps to determine the pricing?

Morning bump
:popcorn:
I am by no means a real estate expert but I'll give your questions a shot.

1. You are correct in thinking that other people may be curious and want to check your house out when viewing the other 2 on your street. However, with the housing market the way it is, I think an argument could be made that now is not a good time to put your house up. Also 3 houses for sale in such close proximity to each other may raise red flags to potential buyers and why are these people trying to get out of the neighborhood.

2. Very wise move to offer to pay 3% for buyers agent. I offered this to buyers agents when we had our house near Pittsburgh for sale by owner. We were very lucky that the eventual buyers did not have an agent. I sent out a couple of feeler emails to local real estate agents asking if they had anyone who was interested in our area and to let them know about offering them the commission. I got a very cold response and I am not sure why.

3. In the county I used to live in, we had a real estate website where you could search the properties in the area and see when they were sold and for how much. Perhaps your area has something similar?

Good luck and hopefully others will check in and give you advice as well.

Thanks for the feedback....I'll look into #3
I'm stuck on #3...is there any agent out there that can look up comps on my property? Not sure if I would need someone specific to Louisiana or not.

:goodposting:

Edited by Tiger Fan

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Looking for creative financing ideas...

We are buying a single-family home as an income property. Been looking for quite a while. We are paying $60K on a foreclosed property. SEV is $65K (50% ratio) but no way is the home worth $130K. Pretty much a paint, floor coverings, and appliance deal (9K?). We are putting 20% down and paying cash for the updates. Wife and I both have excellent credit.

The quotes I received are 7.375% on a non-occupied property or 6.75% with two points. Are there any other options out there? Private financing or other lenders I should be looking at? How to tap into the former?

TIA

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:yes:

Just closing in on my first flip. Installing kitchen and flooring in next two weeks. Got to finish up some plumbing and trim work and get the furnace replaced still. Realtor said it should fetch around $99k. I'll probably have about 60 into it. So basically a year's wage in a slow economy and I could have done so much better. :hot::football::football:

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:tumbleweed:

Just closing in on my first flip. Installing kitchen and flooring in next two weeks. Got to finish up some plumbing and trim work and get the furnace replaced still. Realtor said it should fetch around $99k. I'll probably have about 60 into it. So basically a year's wage in a slow economy and I could have done so much better. :football::football::football:
Good to hear. My last one is finished and has been on the market for a few months. Only a couple of showings, and no offers. I'm very close to becoming a landlord. Good news is that I can get a HEL on it and pocket up to $20K (which I'm not planning on doing), and still have positive cash flow renting it. As it stands now, its still listed, also has a rent sign in the yard, rental ad running this weekend and financing is lined up. 6.74 fixed 15yr 0 closing costs on 80% ltv.

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:goodposting:

Just closing in on my first flip. Installing kitchen and flooring in next two weeks. Got to finish up some plumbing and trim work and get the furnace replaced still. Realtor said it should fetch around $99k. I'll probably have about 60 into it. So basically a year's wage in a slow economy and I could have done so much better. :wub::lmao::football:
Good to hear. My last one is finished and has been on the market for a few months. Only a couple of showings, and no offers. I'm very close to becoming a landlord. Good news is that I can get a HEL on it and pocket up to $20K (which I'm not planning on doing), and still have positive cash flow renting it. As it stands now, its still listed, also has a rent sign in the yard, rental ad running this weekend and financing is lined up. 6.74 fixed 15yr 0 closing costs on 80% ltv.
I wonder how it would work tax wise if you pulled out the 20k HEL and then say that put you at 80k you owe on the house. The 20k isn't income I don't think. But what happens when you sell the house for 80k? Do you just get to keep the money?

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What do you guys thing mortgage rates are going to do in the short-term. I've found a house to buy, and have some sellers interested in mine, so I could lock in a rate any time. Right now it's at 6.375% for a 30-year fixed (but was at 6.25% a few weeks ago)? Is it going to keep going up to around 6.5%?

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:)

Just closing in on my first flip. Installing kitchen and flooring in next two weeks. Got to finish up some plumbing and trim work and get the furnace replaced still. Realtor said it should fetch around $99k. I'll probably have about 60 into it. So basically a year's wage in a slow economy and I could have done so much better. :football::football::football:
Good to hear. My last one is finished and has been on the market for a few months. Only a couple of showings, and no offers. I'm very close to becoming a landlord. Good news is that I can get a HEL on it and pocket up to $20K (which I'm not planning on doing), and still have positive cash flow renting it. As it stands now, its still listed, also has a rent sign in the yard, rental ad running this weekend and financing is lined up. 6.74 fixed 15yr 0 closing costs on 80% ltv.
I wonder how it would work tax wise if you pulled out the 20k HEL and then say that put you at 80k you owe on the house. The 20k isn't income I don't think. But what happens when you sell the house for 80k? Do you just get to keep the money?
I'd say, and I am an accountant (but not a tax guy), that the 20K would not be income but rather a loan. I believe the interest paid on that loan would be tax deductible or at least a write off against the rent income. At the sale it [the interest] would probably be treated like depreciation (increase the tax base if written off year to year). So what I'm trying to say is that the 20K would not have an impact on taxes but the interest paid on it would.

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So I'm getting ready to sell my house by owner and I've created the flyer and a blogspot so I can link it from craigslist and other places online. I'd love a few people to critique it to let me know if I'm missing anything, or what they think.

Specifically:

-Too many pictures

-Are the pictures good?

-How are the bullet points

-Am I blatently missing anything?

Thanks

Link

Edited by Tiger Fan

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The market in Raleigh, NC is trying to hold on, but is finally starting to fall. It is one of the last markets to fall, so hopefully I can get a great deal next year!

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So I'm getting ready to sell my house by owner and I've created the flyer and a blogspot so I can link it from craigslist and other places online. I'd love a few people to critique it to let me know if I'm missing anything, or what they think.

Specifically:

-Too many pictures

-Are the pictures good?

-How are the bullet points

-Am I blatently missing anything?

Thanks

Link

Looks great. Maybe one more picture of the master bath actually showing the bathtub/shower?

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So I'm getting ready to sell my house by owner and I've created the flyer and a blogspot so I can link it from craigslist and other places online. I'd love a few people to critique it to let me know if I'm missing anything, or what they think.

Specifically:

-Too many pictures

-Are the pictures good?

-How are the bullet points

-Am I blatently missing anything?

Thanks

Link

Looks great. Maybe one more picture of the master bath actually showing the bathtub/shower?
Thanks. Was debating this too. It's just a generic no frills tub/shower, wasn't sure whether or not to add.

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So I'm getting ready to sell my house by owner and I've created the flyer and a blogspot so I can link it from craigslist and other places online. I'd love a few people to critique it to let me know if I'm missing anything, or what they think.

Specifically:

-Too many pictures

-Are the pictures good?

-How are the bullet points

-Am I blatently missing anything?

Thanks

Link

Looks great. Maybe one more picture of the master bath actually showing the bathtub/shower?
Thanks. Was debating this too. It's just a generic no frills tub/shower, wasn't sure whether or not to add.
Dunno - I'm no pro. I just saw it was conspicuous by its absence.

Oh, and your closeup of the master closet makes it look like you have an undersize closet.

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So I'm getting ready to sell my house by owner and I've created the flyer and a blogspot so I can link it from craigslist and other places online. I'd love a few people to critique it to let me know if I'm missing anything, or what they think.

Specifically:

-Too many pictures

-Are the pictures good?

-How are the bullet points

-Am I blatently missing anything?

Thanks

Link

Looks great. Maybe one more picture of the master bath actually showing the bathtub/shower?
Thanks. Was debating this too. It's just a generic no frills tub/shower, wasn't sure whether or not to add.
Dunno - I'm no pro. I just saw it was conspicuous by its absence.

Oh, and your closeup of the master closet makes it look like you have an undersize closet.

Thanks.....I agree about the closet. The wife took that one :hey:

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Looking for some advice here, I've tried to search to make sure it wasn't discussed but this search function is exhausting.

Basically I am renting out a townhouse in NEW JERSEY and am six months into the contract. The tenant is an engaged couple with a child and the father is now in Iraq with the military. They emailed me yesterday and said that "his unit is transferring him to a unit in Michigan and that they found a place there and need to move by 15th of October."

They want us to keep the security deposit and they will pay us the balance on November 15th. He claims it will take him some work to get a document but he will get us this document that allows military to break a lease at any time. I am obviously going to need to inspect the unit before agreeing to take the deposit as payment.

I did some research and found this below:

http://www.njleg.state.nj.us/2004/Bills/S1000/650_I1.PDF

STATE OF NEW JERSEY

211th LEGISLATURE

Sponsored by:

Senator RONALD L. RICE

District 28 (Essex)

Senator GLENN D. CUNNINGHAM

District 31 (Hudson)

SYNOPSIS

Delivery of such notice may

27 be accomplished by placing it in an envelope properly stamped and

28 duly addressed to the lessor (or his grantee) or to the lessor's (or his

29 grantee's) agent and depositing the notice in the United States mails.

30 Termination of any such lease providing for monthly payment of rent

31 shall not be effective until 30 days after the first date on which the

32 next rental payment is due and payable subsequent to the date when

33 such notice is delivered or mailed.

So I am curious how to work this... I am thinking that I require the document and then the official clock starts and they have 30 days. Now the lease has both of their names on it so I am curious if they are engaged if that covers both of them since they aren't officially married.

Looking for some legal advice I supposed... need a good translation of the legal text above as well.

Thanks!

Edited by ThePassion

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Just finished working on the house I bought before summer. House looks beautiful. Should list for $99000 or so. But I never did get the lot that I agreed to purchase and now after attorneys have been involved and such, I am seriously considering dumping my agent. Basically he bagged this up on the purchase end of it. And every time I asked a question he assured me that this was a normal part of the purchasing a foreclosure. Now I am left hold the bag.

I can sue them and will probably win some money. Of course this would mean handing a nice chunk over to an attorney. The whole process has been a roller coaster. I hope it can sell but I am not holding my breath. The good news is I'll have only about $70000 into the place so my payments aren't too bad.

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Just finished working on the house I bought before summer. House looks beautiful. Should list for $99000 or so. But I never did get the lot that I agreed to purchase and now after attorneys have been involved and such, I am seriously considering dumping my agent. Basically he bagged this up on the purchase end of it. And every time I asked a question he assured me that this was a normal part of the purchasing a foreclosure. Now I am left hold the bag. I can sue them and will probably win some money. Of course this would mean handing a nice chunk over to an attorney. The whole process has been a roller coaster. I hope it can sell but I am not holding my breath. The good news is I'll have only about $70000 into the place so my payments aren't too bad.

Cool, congrats! My last one turned into a rental after about 6 weeks of NO SHOWINGS. The rental thing is working out pretty well. +400/mo cashflow, with all of my money pulled out (plus a little) via 65% ltv equity line.

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Just finished working on the house I bought before summer. House looks beautiful. Should list for $99000 or so. But I never did get the lot that I agreed to purchase and now after attorneys have been involved and such, I am seriously considering dumping my agent. Basically he bagged this up on the purchase end of it. And every time I asked a question he assured me that this was a normal part of the purchasing a foreclosure. Now I am left hold the bag. I can sue them and will probably win some money. Of course this would mean handing a nice chunk over to an attorney. The whole process has been a roller coaster. I hope it can sell but I am not holding my breath. The good news is I'll have only about $70000 into the place so my payments aren't too bad.

Cool, congrats! My last one turned into a rental after about 6 weeks of NO SHOWINGS. The rental thing is working out pretty well. +400/mo cashflow, with all of my money pulled out (plus a little) via 65% ltv equity line.
Nice, on the cashflow. How did you work that out with your partner then? I am thinking of partnering on a deal similar to what you've stated you do.

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If I'm selling a house FSBO, but willing to work with an agent, is a 3/2 (3% on the first $100k and 2% on anything after that) standard? Listing price is $243K FWIW

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Just finished working on the house I bought before summer. House looks beautiful. Should list for $99000 or so. But I never did get the lot that I agreed to purchase and now after attorneys have been involved and such, I am seriously considering dumping my agent. Basically he bagged this up on the purchase end of it. And every time I asked a question he assured me that this was a normal part of the purchasing a foreclosure. Now I am left hold the bag. I can sue them and will probably win some money. Of course this would mean handing a nice chunk over to an attorney. The whole process has been a roller coaster. I hope it can sell but I am not holding my breath. The good news is I'll have only about $70000 into the place so my payments aren't too bad.

Cool, congrats! My last one turned into a rental after about 6 weeks of NO SHOWINGS. The rental thing is working out pretty well. +400/mo cashflow, with all of my money pulled out (plus a little) via 65% ltv equity line.
Nice, on the cashflow. How did you work that out with your partner then? I am thinking of partnering on a deal similar to what you've stated you do.
He was part of the decision to rent. I floated him about $4K when we made the decision to rent. He gets his half of the profit (less the $4K) when the rental sells. As for the rent money, it just reduces the cost basis of the property.

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Well, I finally got the place listed. Talk to several realtors. The reason I had to talk to several realtors is because I have to sue my buyers agent. Here is the story on that.

Purchase agreement was for the house on a 100' lot. So was the listing obviously. I get to closing, I am pumped up and don't see that it says 50' lot. My agent doesn't see it either until the next day when I go down to get a survey done on the place (wanting to split the lot). So the deed comes in the mail that day and it says 50' lot. My realtor says this is just a paperwork mixup and they'll get it taken care of. I dig in on the remodel.

Months go by with me asking weekly where we are at with the lot. I keep getting brushed off and told it is "almost done." I get to the end of my rehab and apparently what happened was the foreclosure on it was done improperly and the original owner still has the legal rights to the lot. So I won't be getting the lot now. No big deal, but I paid for it so I want some money back. No joy on that either.

I have my attorney look into it and we send out letter to the title company, listing and selling agents, and the foreclosing bank. We get a few responses. The listing agent says that he notified my agent by sending him the deed for the 50' lot a full ten days before the closing. Well, he did but the heading on the email was something to do with adding my wife's name to the deed. So my realtor missed it. He admits that he screwed up but still blames the other agent.

So I have to sue to get my value for what I purchased. I have to sue the listing agent for changing the deal, and my buyers agent for not catching it and stopping the deal. My realtor says that he will accept responsibility but I have to sue them so his insurance will settle. So I see a few more realtors and finally got it listed.

Bought for 19k

Put about 50k into it (roof, siding, windows....all new interior...everything but the studs)

I have about 70k into it.

Listing for 99k. New and old realtor believe I'll make about 95k on it.

Less say 10% for all my fees (6% to realtors plus anything else)

Total profit (85.5k - 70k)= 15.5k

If all goes well. Fingers crossed.

Link to Property

eta - Plus I still have the lot litigation which I am thinking will net me about 10k (15k is appraised value minus 1/3 for lawyers fees).

Edited by Sabertooth

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