Yes, it’s a very boring name…The Silver House is being used only because this is House #25 (turns out it wasn’t!), and 25th anniversaries are normally referred to as the “Silver Anniversary”…
A better name for this house would have been “Brian’s Mom’s House”, but unfortunately that name is just too long for me to have to type in every post. But, it would have been fitting. You see, we originally submitted an offer for this property about two weeks ago. Before submitting the offer, we called the listing agent (whose name is “Brian”) and gave him a heads up that the offer was on the way.
At the time of the call, Brian was apparently in the car on the way to the airport, leaving the country for 10 days. He said that he would be gone, but that his mom would be handling things during that period. Long story short, Brian’s mom did handle things, but the process was long and drawn out. It was not Brian’s mom’s fault at all; she was tremendously nice and helpful. But, it was also clear that she hadn’t had much experience dealing with REO offers or dealing with bank asset managers, so each step took a couple days longer than it normally would have.
But, in the end, she helped us get this house, and it was actually a fun little saga…
Anyway, The Silver House is a 3 bedroom, 2 bath one-story house built in the mid 1980’s that we’re picking up for $46,000. It’s a marginal deal from a rehab/resale standpoint, but should be an easy project that will allow us to make our minimum profit target. That said, we are also considering just trying to wholesale it to another investor (someone looking for a good rental property) or to an owner occupant with cash.
Since it is a Fannie Mae property, we will be restricted from reselling it for more than 20% above the purchase price for 90 days; given that we’ll likely only make our minimum profit on this one as a flip, I’m not sure I’m happy about holding it for a minimum of three months. I’d rather sell it quickly for a small profit, if possible.
Anyway, we’ll figure out our plan at some point before we close on the purchase…at which point I’ll have more to say about this one…
Good work J!
Any action from wholesale buyers yet?
Hey Steve,
For both House #24 and House #25, since we don’t plan for them to be true wholesales (we’re planning to close with cash and don’t plan to immediately resell), we’ve decided we’re just going to wait until we’re closed before we start marketing them. In fact, we’ll likely do minor stuff before we resell each of them — for House #24, we’ll paint the interior and move a fridge in from another house, thus making it rent-ready and for House #25, we’ll do some exterior repairs. Once the work is done, we’ll market it through my buyer’s list, through the MLS and through Craigslist.
In fact, we just closed on House #24 a couple hours ago, so we’ll hopefully paint that one tomorrow and then start marketing…