Yes, technically agents are supposed to bring all written offers. This guy will not even let me write an offer. I keep emailing him or calling him trying to make an offer. He basically tells me he’s not even going to write it up because Seller wants X.
In other cases, I will write up the offer myself and attach a ‘Buyer Non Representation’ form to the offer. I then circle and highlight that I would like the Seller’s signature in the spot that says 'Offer presented to Seller on X date". I have never once received any docs back with the signed presentation of offer. I just get a verbal “Seller didn’t entertain your offer” back from the agent, if any response.
I wonder when the tenant lease is up? I wouldn’t want to try to buy something with a long term lease in place and have to ‘evict’ the tenant and her day care operation. That wouldn’t be fun
The marketing on the day care house (located on Coronado Ave) is trying to appeal to ‘investors’ to renovate and do an addition. But, they are not priced for investors, or at least true investors. For only about $100k more, I can find a bigger house in a much better location.
cb, you’re being very wise to not buy some of these houses that offer no or only a small payoff. Let your competitors do that. It’s a shame to not be working on something, but it would be worse to be working on the wrong thing.
ETA: Is it possible that all the houses in your location that have potential for a decent payoff are already fixed up??
CB - I know you are looking for another Point Loma property, but a friend of mine was showing me pictures of her H’s grandfather’s house in Clairemont/Bay Park for sale with a view of the bay. It definitely needs someone like you to redo!
Flip #7
Still no offers for the bee hive house. I think the market has just stalled right now. Not much else in the neighborhood is going ‘pending’ except the homes priced under a million. Keeping my fingers crossed and patiently waiting for Monday or Tuesday to come so I can strike again
The listing agent contacted me this morning and told me they have received an offer and it is higher than I’m willing to go.
So…back to searching through very limited inventory again. I even crunched my numbers very carefully and I just could not justify buying the property so my crew would have work
As I’ve said before, coralbrook, you’re smarter from a business perspective that the other flippers out there. If a flipper is buying the Bee Hive House at a too-high price, they won’t make money. And if a regular person is buying the house to live in – well, good luck to them.
Going to have to start looking outside Pt Loma. The issue is I have to stick to the neighborhoods that I know really well. That leaves Bay Park, North Park and La Mesa.
The chicken house is an absolute mystery. Listing agent took his sign down 2 weeks ago but it is still ‘pending’. There has not been any recorded transaction changing ownership. I am suspicious that the Seller went into an agreement with a company called Renovation Realty.
Renovation Realty approaches Sellers (usually who are underwater a bit on their mortgage) and offers to renovate their homes for them, sell them under their real estate office and then split the profits with the Seller. They do cosmetic upgrades such as painting, flooring, light fixtures and bath vanities. I don’t think they do major renovations such as rewiring, plumbing, roofs, etc (which the chicken house needs). But, they will record a lien against the property for the amount they have invested for the renovations (which is reasonable). There is no l ien recorded against the property yet.
But, there have been cars (not working type trucks) in the driveway lately, looking like the Sellers are removing stuff from the garage - it appears to be about one piece at a time! and I can see that someone has gone through the house and torn out all the carpet, which is laying on the side of the house. It’s just a big freaking mystery. Why would a Buyer start doing work on the house without any protection?
The Bee Hive house still has not gone into contract in the MLS. Either they are doing counter offers with the other buyers, the Seller is not back from vacation and cannot sign anything, or something else is stalling the finalization of the contract.
Either way, I have a brand new issue that is causing me to reconsider my strategy. Over the weekend, my main investor contacted me and told me that he would not be able to loan funds ‘for a little bit’ because he is going to use his cash to purchase another family home. I’m not sure what ‘a little bit’ means, but at this point in time I do not have enough funds to purchase a home in Pt Loma, or any other high end neighborhood. I am stuck and I do not want to make any offers unless I know I have funds lined up.
So, I have four options at this point. Stop hunting until my investor clears his funds and try to find remodel projects to keep my crew busy but I will not be making any income, move to lower income neighborhoods that I am not familiar with and I could make a big mistake, try to find small condos in the neighborhoods I am familiar with, or find a new main investor.
I have researched all of the condos available in my neighborhoods, and there does not seem to be any margin available to work with. Condos or townhouses that are in original condition are selling for only about 5% to 9% under fixed up value. That doesn’t leave enough room, but I will keep looking.
I am going to reach out to several smaller investors today and try to meet with them to see if they are willing to be the main investor on my projects.
Meanwhile, a good renovation candidate went on the market yesterday.
