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I found a house that seems like it would be a good deal for somebody. What should I do, if anything?
It is listed, but hasn’t been for long.
It is pretty big 2000 sqft and on a fairly large lot with a pool. It’s 4 bedrooms 3 baths.
It’s listed at 60k and the ARV is 130-150k.
It needs A LOT of work. It is a major rehab. Using Jackie’s square footage method I estimate about 35-40k in repairs including foundation work and maybe some termites.
Is there anything I can do to get in on it? Maybe submit a low offer through my agent?
I could just forward it to a rehabber I know and maybe get a referral.
Any ideas?
You said it’s “listed”. That’s an immediate red flag to me because it means everyone with access to the MLS or a real estate agent has access to it. Plus the agent probably will not allow you to assign the contract. Depending on the state you live in, a referral fee that you speak of may be illegal unless you are an agent.
As a recovering rehabber, the picture you paint of this house means the absolute top a rehabber would pay is about $51k which means they would really attempt to buy it for $35-40k or less.
Suggest you target, locate, contact owners of properties that are not listed. You can do that for no cost other than time by talking to people or calling FSBOs or For Rent signs in neighborhoods you are targeting.
Good luck, Hank
I’m asking myself “what value would limbstan bring to this transaction to warrant making money off of it”?
The only thing that comes to mind is rehab to retail, or pre-habbing to near retail.
Personally if I were a rehabber I wouldn’t pay a referral fee to a non-agent for telling me about an MLS listing, even if the referral fee was legal. I don’t see the value added.
just my two cents…..
Everyone knows about MLS listings so there’s no reason to pay you a referral fee for something that is public knowledge.
The only way you could make money on it ( maybe) is to buy it, fix it up, then resell it. But if you don’t have experience rehabbing, you should not cut your teeth on this one.
It’s better to get started by just wholesaling. find deals that are NOT listed.
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