Re: Buying under fair market value? - Landlord Forum thread 325919

Re: Buying under fair market value? by Garry (Iowa) on October 19, 2014 @10:37

John, you are not much of an INVESTOR if you think buying a property for 10% under fair market value is a "good" investment. A first time home buyer that was going to live in it,would consider it a "good" buy. But a true investor wouldn't pay more than 75% of the FMV for a property that only needed a little cleanup and painting, and would be ready to market in less than 30 days. And if it needed a lot of work, an INVESTOR would only pay 50% or less of the FMV for it. And it takes YEARS of daily hands-on experience to become a "good" handyman, not just a few months. So, go buy a property this winter, fix it up, and either rent it or sell it, and then post to this forum next summer, and tell us how you did.

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Re: Buying under fair market value? by Katiekate (New York) on October 19, 2014 @10:57	[ Reply ]

Yes, and in most states you cannot work on the property unless you are owner occupied. Otherwise you must use licensed contractors for everything. Even with owner occupied...you really need to know what the code is and make sure you comply. The weekend, self-taught, slap it together handyman will end up in trouble, If you cannot afford to do it right the first time...how will you afford to do it over?

Re: Buying under fair market value? by Garry (Iowa) on October 19, 2014 @11:31	[ Reply ]

Thanks, Katiekate, for the backup

Re: Buying under fair market value? by John Farmer (Florida) on October 20, 2014 @03:54	[ Reply ]

How on Earth would I get a property for 75%? I talked to a realtor and she said that is not very realistic. Maybe I have the wrong realtor? And if it's 50% before fix-up, then it might be at 75% by the time repairs are done. I was taking that into account.

Re: Buying under fair market value? by Anonymous on October 20, 2014 @12:27	[ Reply ]

Look for wholesalers, not realtors.