The majority of people want to buy a house.
But what’s it like to buy a hoarder house? What’s the process like?
What are the costs? How do you find these properties in the first place?
Is it worth it to buy them? Find out on this video!
Transcript:
I know you’ve had a pretty good run up till now. Your very first one’s probably pretty fresh on the line. What did that look like and how’d you find it? Let’s go there.
Daniel Tidwell 00:22
Yeah. That was fun. So we did a lot of research. I did a lot of research before we jumped into real estate. Thankfully, we kind of had made the decision six or eight months before I quit my W-2. And so I had all the knowledge but need to start taking action. So we ended up moving from Georgia to Florida, started brand new real estate businesses. You’ve heard that from Mallory and I just started hitting the pavement trying to find deals off market deals basically. So I knew to cold call drive for dollars make do make offers on the MLS but ended up just talking to a new neighbor. Telling them what we do kind of just networking, but being friendly being a neighbor and he said, “Hey, there’s a house down the street. I’ve always had my eye on it. It looks horrible. You can barely see the thing.”
He gave me the address. So I looked at the seller. I tried cold call and I could never get a good number. I can never reach her and drove by and just knock on the door two or three times and never got anybody. There’s always a car on the carport. I ended up talking to a neighbor try to find you know, what’s the schedule? Who is this? What’s the deal with the house? They kind of gave me her schedule. I’m not really lucky but kind of went in that timezone when she should be home. And sure enough, she was walking to the mailbox and I just got out of the truck and walked up introduce myself. Yeah, just started the day.
And it was you know, we’re really blessed because it was super nervous. It’s your first deal. You’ve never talked to a homeowner. Everybody hates people just walking up to them and talking to them. You know, I’m home, I don’t know you or leave me alone. And she just, I kind of said, “Hey, you know, I’m a real estate investor, would you be interested in an offer on your house?” And she said, “Yeah, I would.” I’m like, “Oh, okay.” I didn’t think it was that easy. So we negotiated. She said she needed to move in two months. So we had plenty of time. But we had a lot to work through. And the house was bad. It was a hoarder house. Animal House, you know, cats. The whole everybody seen the very disgusting houses? This was one.
Chris Bounds 02:42
It’s a lot of opportunity. Yeah, yeah.
Daniel Tidwell 02:44
Yeah. I walked in and you’re a little surprised. You know, it’s your first deal. You walk in and you go, you live here. You’re trying to be nice.
Chris Bounds 02:52
You have to have the poker face.
Daniel Tidwell 02:54
Right? Right. Like oh, “Yeah, this is good.” You know, don’t look at the ground. Look at the wall. It looks great. Yeah. I ended up asking her what she wanted. She wanted pay off. I didn’t know numbers that well. I’ve never done a deal. And so I kind of ran the numbers with a very conservative ARV and gave her an offer. She accepted it. She was like, “That’s fine. That’ll work for me.” And so I went through and I didn’t know if I was gonna flip it or wholesale it.
Everybody suggests wholesaling your first few deals. I got an inspector out there, you know, kind of told me what was going on. And I said, “Well, let me just throw it out there to a couple investors in the area and see what someone will give me.” And someone ended up offering me 43,000 over what I had it under contract for. And I said, “Well, I’ll take that wholesaler.”