The Run Down House In A Nice Area

Scott CostelloAll, Blog 13 Comments

Probate Lead UpdateJust a couple of quick updates…

Seller House Visit

I might the a seller at their house last night to look around and talk things over with him.  The house is in a very desirable area of Morris Township and the street it is located on his also a very nice suburban neighborhood.  It’s been vacant since March and needs a lot of work.  The siding needs to be replace and probably the roof, but I’m no expert there so you never know.  The inside looked solid enough, no water damage to be found or noticeable cracks.  I did notice the floor in the entrance (foyer) seemed to have a hump in it.  Had hardwood throughout, 4 bedrooms and 2.1 baths.  It was a good size home.

The bad of it was…

  • that the lot, while fairly large .5 to acres was very steep and was pretty much a forest.
  • The central air unit needs to be replaced
  • Kitchen needs to be gutted
  • Bathrooms need to be redone
  • Paint, refinish hardwood floors, and the rest of your typical things

The guy wants to get $400k out of it and has a few other contractors who are going to make him an offer.  The comps to me say the ARV is around $550k to $575k.   I did ask if he would be willing to take some money now, and get the rest a few months down the road in order to get his asking price and he wasn’t interested in that.

I’m going to give Jon a call today and work through the process of making an offer.  For me, assuming my usual 50k in repairs My offer would come in around 315k to 332k ((ARV*.70) – repairs – profit).  Which is about 80% of his asking price.

The owner lives in Virginia and will be back up here next weekend which would give me a chance to bring a contracter through the place if we are in the ballpark.

SI Lead Manager Software

I’ve been pretty quiet about SI Lead Manager (the software I’m creating to keep track of my leads and mailers) because I’ve been working hard to redo the way I handled scheduling, printing and keeping track of mailers.  I’m in the home stretch and will be putting out an update this month.

Voice Mail Message

I had asked Shae (of Good Faith Investing)to record my voice mail message from a script I provider her.  It is a very long script and she took the time out of her busy schedule to help me out and gave it back to me the next day.  So I wanted to thank her for doing that for me.

I did however get in a little trouble with my wife cause I didn’t ask her to do it.  Whoops!  She got home from work last night and mentioned she read my blog and asked how come I didn’t ask her to record the script.  Carey even suggested it, so this was my fault.

Have a good weekend everyone!

P.S. This was suppose to be a quick update, sorry it got a little long

Scott Costello
Follow me

Comments 13

  1. Uh oh Scott….not good to be in trouble with the wifey 🙂 You’re gonna just have to make it up to her. I’m sure you can think of a few ways to make it up to her and I’m sure you’ll have other recordings that she’d be more than happy to do for you!

    1. I’ve got a few ideas to make it up to her. I’m going to see if she is interested in reading Shae’s awesome new ebook about Financial Freedom and I want to work the guide together.

      1. Kathy and I are doing the guide together Scott. We actually started 10/1 with our new plan and budget. So far, so good. Of course, we’re still working through things this month as it’s the first month of an entirely new way to do things but we are both excited about it!

  2. Just put the offer in. That $50K sounds roughly like what it will need. If a contractor wants to bid more, let ’em…if he realizes that they are all roughly the same, that’s his call to take it or not, given the scope that’s needed.

    1. I’ll be making an offer on Monday. I’m pretty confident in my offer, but if Jon can come up with another way (instead of doing a straight deal) that could give this guy more money then I want to explore that option as well. But regardless I’ll be making my offer on Monday.

    1. I’m gonna post your voice mail on my blog. I figure it’s ok considering the fact that it’s so long and would take someone hours to transcribe it and heck, they could just as easy call my voice mail number right? 🙂 Maybe you could make some extra money doing voice overs for people.

  3. First I would like to say that I love your blog

    I have a question. In your calcs you say you are assuming your usual 50 K for repairs. what is that based on? It seems like you have a large unknown in the roof. Replacing the roof will blow the 50K estimate out of the water

    This looks like a good deal as your bound to make about 180K profit based on your numbers

Leave a Reply

Your email address will not be published. Required fields are marked *