What are REAL DEALS by the MOB?  Real deals are actual real estate transactions being conducted by Tracy Caywood.  You can visit the posts to get updates as they progress. They won’t all have a happy ending, but you can see for the first time what REALLY happens in the business.  This is real shit right here.

Date of Initial Contact by the Seller: September 5, 2013

Where This Lead Came From: Probate Mailing

What is the Seller’s Situation:  The screenshot says it ALL

probate-marketing

Action Plan: It was about 9:00 pm when I got this lead, so I sent the seller an email letting him know I would call him at 9 am. in the morning.  And that’s exactly what I did. I called him at Sept 6, 2013 at 9:00 am Sharp.  He immediately went into the story. So here’s the run down.  His brother died in the bathtub (with water in it) and was in the house for a month (in the water) before anyone found him.  His brother was also a hoarder. We agreed to meet at the house at 10:30 am on Saturday, Sept 7, 2013 to take a look. He said that he found a DOUBLE FILTER mask that will keep the smell from gagging us, so he’ll bring us one!  I can’t wait! This is an awesome story for REAL DEALS whether I end up getting the deal or not. I’m going to take photos and see if I get an ORBS!!!

probate-investingSaturday, Set 7 update (after seeing the house):  I arrived at the house at 10:30 am and the seller was sitting in the front yard waiting for me.  He warned me that the smell started at the threshold of the garage.  So I avoided that area for as long as I could. If a breeze blew, I could catch a stinch of death. it was pretty damn creepy. He walked me around the perimeter of the house, pointing out every detail of repair that the house needed. Then he offered me the mask, and we went inside.  Remarkably, the mask didnt allow any smell of death to seep in. He gave me a tip that if I started to smell anything, to pinch the top of the mask where my nose is, and that would keep the smell out. He kept referring everything inside as “biohazard”.  To sum up the repairs, the house needs one of everything. Not only has the smell of death seeped into the carpet, walls, and counter-tops, but there’s also deferred maintenance. There’s a slab leak, it needs a new roof, needs a new kitchen….just imagine a full rehab on a 1750 SF house.

He revealed that there’s a HELOC loan on the house for $135,000.00 and that him and his siblings prefer to sell the house to an investor to make a “coin”, and move on from this problem. They have no interest in rehabbing the house themselves.  I told him that I would get him an offer in writing today, and send it to him by email.

For your visual stimulation, here’s a photo of the house.

photo

Offer Made to the Seller:   After researching the comps in detail, I’ve determined that the ARV on this house is about $205,000.00. The rehab is pretty extensive. due to the biohazard material, and to rid the house of any odor of decomposition, it needs one of everything. This smell has seeped into the walls and anything porous.  So I have the estimated repairs at $40,000.00.  My offer to the seller right now is $95,000.00.  I made the offer knowing that he owes $135k on a HELOC loan.  In this event, it would be a short sale.  He made some comments that maybe some other investors would see things differently than I did and would be able to get repairs done for less than me.  So he’s definitely shopping this around. And with all of the newbs coming into the business right now, there’s a good chance that I’ll get outbid on this one because of the location (Jax Beach).

I’m going to follow up with the seller on this, but odds aren’t looking in my favor.  He wants to make some money on this house when he sells it, which I cant see him doing – no matter which exit strategy he takes. The probate isn’t quite complete yet, so he’s not in a “hurry” to make a decision.  Time and circumstances will change everything with this seller. FOLLOW Up, Follow Up, Follow up.  An investor is his ONLY option, in my opinion.

Response from Seller:  I received a reply to my offer.  It’s no deal. They don’t all work out, even in situations like this. I dont blame the seller for not wanting to do a short sale. There’s really nothing in it for him.  See photo of email below:

probate-investing

Lesson from the Real Deal: Every seller and every transaction is a unique experience.   Embrace each one.