Well, it has finally happened, there are two new projects on the books and a possible third. After what seemed like a long lag, things are finally rolling again at STARKE, Inc. These new houses are awesome, each of them are in the Tower Grove South Neighborhood and very unique. How we happened upon these properties is the same old story, LUCK and a bluff. I say "luck" because you have to be the one to see, go look and then act before anyone else. You also have to gamble and try to make your offer the most attractive without cutting too deep into your margins and overpaying. The Mini Castle whom we will call "Mini" had multiple offers on her as soon as she hit the market. In fact, my sisters friend who is also a rehabber was viewing it the same time we were. Running into other rehabbers in a prospective property is kinda tense. I like to compare it to an old fashioned stare down in a high stakes poker match. The goal for each rehabber is to not give away their position on the property and win the pot.
Negotiating on an in demand foreclosure is truly a manipulation of many factors. Time, you have to be the first one to draw and the first one to close. Money, you should always try to have cash. Relationships, it helps to know the person who has the property up for sale. If you have worked with the person before you know what they like to look for in an offer. Knowledge, your rehabber has to know what they are looking at and be comfortable with it, because more often than not you won't be able to have proper inspections. I work with a rehabber, STARKE that usually only has one inspection done....the sewer camera. In the sewer is where real dangers to profit margins lie. If you as a team know these factors and can work them, you can end up with awesome properties.
Over the next few weeks I will be introducing you to the new properties, new regulations and new rehabbing shenanigans as we move forward towards two new completed projects!
