Steve D Valentine walks through six options after buying a house: repair and refinance with minimal cash invested, sell as-is if margins are tight, do small renovations to flip or hold, or use lease-options and seller carryback notes. Get contractor bids first and clean the property before deciding.
Six things you can do with any property that you need to determine after you purchase it. That's right after. You see, every time we buy a property like this one, we go through our stages of number one, is there enough equity after buying the house to repair it, renovate it and refinance it and keep it? Some of you know that as the brrrr method. I do it a little bit different because I actually will have zero money into this house when we're done if we decide to go that route. That's the difference in the brrrr. The brrrr only allows you to take so much money out of the house. And in a market with high interest rates, it's really hard to do that right now. So it might not work for this one right now, but it is a great way to own rental properties, which is exactly how we own more than 95 rental properties. Was finding things way below market. We could put money into and use the equity difference in what we put into it and the appraised value as our down payment. That's one thing we look at. We're not looking at that right now. We're not adding any more rental properties. So let's go to the next thing. Right. So the next thing is determining should we just sell this as is. Well, that determination is based on where our business is and based Our investors are looking for projects. And how profitable is this potential deal going to be? You should know those things and you can't know those things unless you know your numbers. So the only way to determine that is by getting a full bid before you swing a hammer. Now, I say before you swing a hammer, but not before you clean up. Like go ahead and get this cleaned up, get it out. Because the cleaner it is, the easier it is to look at. And they don't look as bad once they're cleaned up. They just look like shit right now. And that's okay. So once we determine and we have those bids, let's say that the profit margin on this is really slim and it needs a sewer line and a roof, those types of things, we're probably going to sell as is and make a 5 or $10,000 profit really quick and and disclose the things that we found and let somebody else take on the project. If the numbers come back in, which I think they will, on this particular property, we're going to keep the tile. We're going to. The roof is good, the AC is good. The only thing that's unknown is a sewer. It pretty much needs a kitchen and some minor stuff in the bath. So it's really a very small renovation project and there's a good amount of profit in it. So we're probably going to go ahead and do the minor project on this and, and keep it and flip it. Now you can go further depending on what you want to do. There's also opportunity, depending on how you finance what cash you have in the long term, to do something like lease, purchase, seller, carry back something different that is the same thing as leasing without the liability. So if you do a lease option, you're going to lease with an option to purchase. So you have a locked in contract, you have a locked in lease. This is lots of different rules that you can go through here and different negotiations you can do with the buyer depending on what their situation is. Or you come down here and you do a seller carryback, you fix it up, you sell it for a higher dollar than what market is because you're willing to take 5% down, you're willing to carry the note and be the bank until somebody can do that. So there are a lot of different options with every property. And there's a lot of options that you don't know about because most people don't offer you these options. These, this is what we do as a real estate strategist. We meet with you, we go through these properties and we figure out and determine what is the best course of action, no matter what your situation is. And everybody has different variables. So if you're looking for more options or you're thinking about what do I do with these houses? Subscribe here, connect, keep watching, and let me show you what is absolutely possible in the real estate business. Whether you're a real estate agent or a consumer. The strategies that I use work for both of you and I'm really looking forward to connecting with you in the future.
It’s Not What Your House Is Worth; It’s What It Can Do for You (Pause, Identify, Respond)
