For all “rehabbers” and “wholesalers”. Is their a formula you use when determining how much you will pay for a distressed property. I have heard many “rehabbers” look to purchase these properties at 70% of FMV. How would you determine what your actual numbers will be be. Would you (for example) add up your rehab/closing/holding costs and then determine what your net profit would be based on a percentage of purchase price as well as a percentage of your rehab expenses?
“Rehabbers”, what do you expect of someone who would assign the property to you? I would imagine 3-4 comps in the area which sold within previous 12 months which is very comparable in size of lot/ interior and location. Written guestimate of repairs to fully rehad property(which would actually come to within 10-20% of your actual costs. I reside in in North Jersey and have very intersted in “wholesaling properties” to honest investors. Any info you could provide me with would be very much appreciated!!