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Started By
Message
I need some advice on this buisness deal
Posted on 12/3/12 at 3:33 pm
Posted on 12/3/12 at 3:33 pm
Scenario is this..
Got a good trusted friend IVe done work and deals with past 10 yrs.
He came across peice of property we he can buy for 50k.
He called me and asked if I wanted to go in half..
25k from me and 25k from him.
Property apprasied for 140k... needs 5-10 in repairs.
Very sell-able and desirable area.
So basically we'll have 60k invested insomething we expect to sell for 140.... thats 80k difference..
Even if we got 100k for it thats still 40k to to the positve.
Im trying to find the negatives on this..
timeline for sale according to realator is 2-3 months..Like I said its a desirbale place.
Any thoughts or suggestions?
TIA
Got a good trusted friend IVe done work and deals with past 10 yrs.
He came across peice of property we he can buy for 50k.
He called me and asked if I wanted to go in half..
25k from me and 25k from him.
Property apprasied for 140k... needs 5-10 in repairs.
Very sell-able and desirable area.
So basically we'll have 60k invested insomething we expect to sell for 140.... thats 80k difference..
Even if we got 100k for it thats still 40k to to the positve.
Im trying to find the negatives on this..
timeline for sale according to realator is 2-3 months..Like I said its a desirbale place.
Any thoughts or suggestions?
TIA
8
Posted on 12/3/12 at 3:40 pm to TIGRLEE
Why are y'all able to get it for $50 if it's worth so much more?
Posted on 12/3/12 at 3:42 pm to Janky
quote:
Why are y'all able to get it for $50 if it's worth so much more?
This. Deal sounds too good actually.
Posted on 12/3/12 at 3:43 pm to Broke
Needs ton of work.
Luckily my buddy happens to be in that line of work.. so the expenses are minimal
Luckily my buddy happens to be in that line of work.. so the expenses are minimal
Posted on 12/3/12 at 3:45 pm to TIGRLEE
deals too good to be true usually are
Posted on 12/3/12 at 4:07 pm to TIGRLEE
My first thoughts:
Environmental liabilities missed in the appraisal
Tax Liens out the arse
Environmental liabilities missed in the appraisal
Tax Liens out the arse
Posted on 12/3/12 at 4:08 pm to TIGRLEE
quote:
Luckily my buddy happens to be in that line of work.. so the expenses are minimal
I would say the fact that he has his own equal amount of money in the deal is a positive, but........
Posted on 12/3/12 at 4:16 pm to mpar98
quote:
deals too good to be true usually are
This^^^^^
Posted on 12/3/12 at 6:21 pm to eazyeric23
Really research this and find out the details. Somethings missing. Get all the numbers from your partner who's in this line of work and think about financial situations you are in. Everything is timing in business. Make sure its the right time for you, get all the numbers, clarify with your agent( cause something up) and make a joint decision
Posted on 12/3/12 at 8:26 pm to TIGRLEE
Is it way below the flood plain or anything like that? Building a massive pad isn't cheap. That's the first thing that comes to mind.
Also, why would he ask you to go 1/2 if that's all there is to it? Just a question to ask yourself. I wouldn't give up a potential $40k just because we're buds. But maybe that just me.
Also:
How long has it currently been on the market, or is it?
I'm just trying to help you find any negatives. Good luck
Also, why would he ask you to go 1/2 if that's all there is to it? Just a question to ask yourself. I wouldn't give up a potential $40k just because we're buds. But maybe that just me.
Also:
quote:When?
appraised
quote:
Very sell-able and desirable area.
How long has it currently been on the market, or is it?
I'm just trying to help you find any negatives. Good luck
Posted on 12/3/12 at 8:54 pm to TIGRLEE
Only if you can afford to loose the $50k in worst case scenario.
A buddy of mine did this with his friend who is a "professional" flipper and it hasn't ended so well. He hasn't lost his money but the house is now in the rental market so he didn't get his money back either.
A buddy of mine did this with his friend who is a "professional" flipper and it hasn't ended so well. He hasn't lost his money but the house is now in the rental market so he didn't get his money back either.
Posted on 12/3/12 at 9:03 pm to nolanola
Order a home inspection. Make sure you get title work done (IE-research the chain of title). Talk to a realtor who can access MLS to give you the background on the property's history.
If all comes back well, then consider it. If not, you may have spent a few hundred to keep from losing a few thousand.
If all comes back well, then consider it. If not, you may have spent a few hundred to keep from losing a few thousand.
Posted on 12/3/12 at 9:09 pm to TigerDeBaiter
quote:
Also, why would he ask you to go 1/2 if that's all there is to it? Just a question to ask yourself. I wouldn't give up a potential $40k just because we're buds. But maybe that just me.
This.
Seriously why would he bring you in this deal if it was such a slam dunk?
Posted on 12/3/12 at 10:45 pm to TIGRLEE
If you've done business with the guy in the past with I assume profitable results.......then why are you questioning this deal? I would have to see comps of the area to believe for myself what potential is. Obviously needs clear title and diligent inspection. Good luck
Posted on 12/3/12 at 11:03 pm to GFunk
I'm pretty sure he was talking about raw land. That's the way I took it anyway.
Posted on 12/4/12 at 9:37 am to GFunk
quote:
Make sure you get title work done (IE-research the chain of title).
Have an abstract done of the property...cost about $250...any title company can do this. People dont realize that taxes and liens can continue to be attached to the property....good luck
If you need a referral for this work...I can help.
This post was edited on 12/4/12 at 9:38 am
Posted on 12/4/12 at 9:48 am to TIGRLEE
quote:
Property apprasied for 140k
Have you actually seen the appraisals?
Posted on 12/4/12 at 9:58 am to LSURussian
There are a lot of foreclosure deals like this on the market. Just do your homework.
Posted on 12/4/12 at 10:25 am to TIGRLEE
Make sure to factor in transaction costs on the back end (realtor fees, closing etc). That can take a big chunk out of your margin. Also, keep in mind how tight financing is right now, even if people want to buy your place. There is always the chance that you might have to lower your price to get the demand up for someone who can actually get the financing to want to buy it.
Posted on 12/4/12 at 9:18 pm to TIGRLEE
Consult an attorney.
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