Man it's been crazy out there! Hope everyone is safe and warm.
We've been going a bit stir crazy and it's been really difficult getting out there to see properties. The abandoned ones are really hard to go see - they aren't shoveled out and have massive snow drifts so it's nearly impossible to get a peek inside.
We have had the opportunity to check out a few properties lately though. The first is a potential short sale deal in Randolph that came in through one of our mailings. The owner is in a tough financial situation because of health reasons. He tried to work with the bank, but the bank didn't want to work with him. They're basically harassing him about getting current on his mortgage even though he's explained that he can't work. He's about ready to give up, and just wants somebody to take the house off his hands. He is very sweet and we introduced him to a short sale agent that we know will take very good care of him throughout the process. Hopefully, it'll be a win-win-win situation for all of us; he gets out, we get the house, and the bank gets some money.
This past weekend we checked out another short sale opportunity in Woburn. The owner is an elderly lady who can't handle the upkeep of the house any longer. The main house has 3 bedrooms and a basement that could likely be finished for a second living area. They had also converted the garage area into an in-law suite, however, it's possible that it was not permitted. If it was, it could potentially be used for rental income. They installed a propane heating stove in the living room, but it wasn't done right, so the siding by the vent is charred and melted. They had also started to do some work in the main house, but never finished, so everything was a bit of a mismatch of old and new. The bank has a price in mind for what they think this house is worth, but in my opinion, it's about $75k too high. There is trash everywhere, lots of holes in the walls, needs a new roof, needs a new heating system, possible permitting issues, new plumbing and electrical… the list just goes on and on.
Sometimes getting through to the banks can be tough. We're the boots on the ground, we know what's going on in neighborhoods and what local property values are. Banks don't see what we see, and that can prevent them from approving a short sale. The way I see it, short sale opportunities are similar to slow cooker cooking — you "set it and forget it". These types of deals takes months to materialize, if at all, but can be great opportunities for investors who have the patience to wait it out.
Stayed tuned! We'll have some updates on these and a few projects we will be kicking off in the coming weeks.