More NWMLS Deals

Who says you can't find deals on the NWMLS?

There are 54 single family home listings in Seattle on the NWMLS currently priced under $300,000. Six of these have the word "fixer" in the marketing description. Of these, one is a pre-foreclosure; one is a bank-owned REO; three are listed as possible teardowns, with significant equity.

One of these fixers is on a busy street in north Seattle, and across the street from a public high school's football field, soccer fields and tennis courts. It is small at just over 500sf. But it is situated on a large lot, where a larger house could be built in back. The existing house might be fixed up and used as a detached rental ADU. There is no mortgage on the property, and it is vacant, owned free and clear. Seller financing is a strong possibility for a house like this.

Six of the 54 listings have an "estate" designated as the current owner of the property. That means that a few of the properties are owned free and clear, raising the opportunity for seller-financing terms. Four of these are on lots that are larger than 10,000sf, and it may be possible to subdivide the lots.

Five of the 54 properties are priced under $200,000 - but higher than their tax-assessed land value. Twelve of these properties have been on the market for longer than 60 days, one for over a full year. A cash buyer might be able to pick up any number of these properties for less than the listed asking price.

Six of these homes have four bedrooms, for anyone thinking of renting by the room. One of these also has a second kitchen, where an investor could live on one level and have a separate attached ADU within the home. These might make great first-time homes for an investor who hopes to get some additional income until they are ready to sell and move up to a nicer home and better neighborhood, without having to pay capital gains tax on their profits.

There are many ways to screen NWMLS listings for desirable investor acquisitions. More in tomorrow's blog!

Happy Investing!

Finding Motivated Sellers

Where does an investor find homeowners who are motivated to sell? 

It is much easier if the homeowners come looking for you. Whether you door knock, do direct mail, run ads, or have some other marketing campaign, your success rate will depend on developing a highly-targeted list of the homeowners most likely to sell their houses to an investor at a deep discount. Here are some of the best places to look for motivated sellers:

For Sale By Owner lists, ads and websites

Check out Craigslist, forSaleByOwner.com, Owner.com, for sale by owner on Zillow.com. These are some of the most popular sites used by owners interested in selling their homes themselves, usually because they want to save on real estate commissions. This means that they could be pinching pennies in order to get out from under their mortgage.

Out of state owners

People who live out-of-state tend to be more disconnected and disengaged from their investment properties. Many of these people had to move away unexpectedly and for whatever reason, they just don’t care about their property. Often these people have a vested interest in liquidating as soon as possible. Get a list of absentee owners from your friendly, local title company for a nominal fee.

Abandoned or neglected properties.

Look for owners of properties that are fire-damaged, moss-covered, paint-peeling, empty or neglected fixers. Obviously the owners don’t care about these properties, or perhaps the deferred maintenance is just too overwhelming. These properties can easily be found just by driving around in almost any middle-class or working-class neighborhood.

Non-owner occupied owners of problem properties (city code violations) or problem tenants (court evictions)

For obvious reasons, people are much more likely to part with an investment property than they are with their personal residence. 

Estate properties, especially if the heirs live out of the area. Read the obituaries, or find a good probate attorney who may be willing to send referrals.

Homeowners who have filed for divorce

Underwater owners (who owe more on their mortgages than the market value of the house)

Pre-foreclosure property owners who have received a Notice of Default from their lender

Tax Delinquencies

Many of these owners are at the end of their rope financially. They literally don’t have the time or money to wait for a higher offer. If they don’t sell the property to you, they will lose everything to foreclosure. You may purchase lists of homeowners facing the situations described here. 

Your Sphere of Influence

Talk with friends, family and associates to find motivated sellers among them or to get referrals. Your personal network can be a powerful source for finding good deals. Make sure to tell everyone you know that you are a homebuyer and what types of properties you buy.

Happy Investing!

Tenant Repairs

How do you get a tenant to make necessary repairs to a property you own?

My last blog post advertised a house that my development company plans to tear down to make way for a mixed use commercial development at the Rainier Beach Light Rail Station. We closed on it one week ago.

The house was previously rented, but it has been vacant for at least a year, and the yard has become seriously overgrown. It was cited by community residents as a property in need of clean-up, fix-up as part of the Mayor's Community Walk in Rainier Beach last week.

Yet, it will be at least six months before we demolish the house and grounds.

So I advertised it as a short-term rental at the low, low price of $500 per month. I was looking for a handyman or tenant willing and skilled in making house repairs, property improvements, and willing to do extensive yardwork (bids to just clean up the yard ranged from $500-1000).

I was swamped with calls and emails, as would be expected at this price. I had many outstanding applicants from which to choose.

My top candidate is former military, employed by a Security firm. This applicant was willing to pre-pay the six months rent in full, make all necessary repairs and clean-up, and even hire me to help her buy a house at the end of the six months. That is certainly over the top, stand-out from the crowd material! She signed her lease agreement today.

Other investors offer the purchase of a house at a good price to lease-option buyers, who are willing to do all fix-up and repair. So it is possible to do....

Happy Investing!

Update on Sunday Tour of Fixers

Our "Fixers" Tour of Homes today has been modified to include this home in Brighton, and to drop one which is still "attractive" enough for a drive-by ("attractive" when referring to fixers may be a bit of a misnomer).

Both houses are located in solid working-class neighborhoods, close to the up-and-coming Columbia City neighborhood. This one was added because it is vacant, has been on the market for more than five months, seller appears highly motivated, is a large (almost 9000sf) lot, zoned L2. This is definitely a fixer with potential.

Five houses on today's tour range in asking price from $200,000 - $300,000.

Maps, more information, and directions will be available to pick up at our first house on the tour, today at 1pm: 1014 E. Spruce Street. The tour is FREE and no reservations are necessary.

Fixers in Seattle on Sunday's Tour of Homes!

Sunday Tour of Homes
Interested house-hunters are invited to Seattle’s Sunday Tours of Homes this month, which will feature properties of special interest to investors, cash-buyers, and first-time homebuyers. The tours are free, and sponsored by Home Land Seattle.
Our next tour will focus on “fixer” properties listed for sale in central areas of Seattle from Beacon Hill to Leschi to Columbia City, for under $300,000. The tour is scheduled from 1-3pm this coming Sunday, August 21.
Tour participants will meet at 1 pm sharp at the first house on the tour. You will pick up detailed maps, directions and information of the featured houses at the first house.
Here is the tentative schedule this Sunday:
1 – 1:15pm: 1014 E. Spruce Street $279,950
1:25 – 1:40pm: 123 24th Ave $300,000
1:50 – 2:05pm: 1534 Sturgus Ave S $219,000
2:15 – 2:30pm: 5042 35th Ave S $199,999
2:40 – 2:55pm: 4220 49th Ave S $239,950
The remaining tours are scheduled as follows:
8/21 - Fixers
8/28 - REOs, Foreclosures

No reservations are necessary; no sales pressure, no obligation. You drive your own vehicle, so you may stop at whichever homes you wish to see. As a part of a larger group, you will have opportunities to learn from the constructive comments of your fellow tour members.
The Sunday Tours of Homes are led by Wendy Ceccherelli, Designated Broker for Home Land Investment Properties, Inc. She is an experienced real estate investor, and the tour provides valuable guidance for first time home buyers, real estate investors and other bargain house-hunters.
To be notified of upcoming Sunday Tours of Homes, call our free 24/7 recorded real estate hotline at 888-621-4999 x4.

Sunday Tour of Bargain Homes In August!

Our Sunday Tour of Bargain Homes in Seattle will be starting up again in August. We will be featuring properties of special interest to investors, cash-buyers, and first-time buyers. Now is a great time to cherry pick from among the many motivated buyers in the marketplace! Inventory is up, prices are down, and mortgage interest rates have never been lower.

Here is our tentative schedule of tours, every Sunday in August from 1-3pm:
8/7 - Seller Financed Properties for Sale
8/14 - Estate Sales (Free & Clear) Properties
8/21 - Fixers
8/28 - REOs, Foreclosures

We try to focus on desirable Seattle neighborhoods and desirable home configurations (eg. 3BR/2BA) as much as possible, to find the very best deals for our buyers!

The tours are free! Please post a comment here or contact me directly, if you are interested in any of these tours.