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Author Topic: Rehabbers and Financing  (Read 1683 times)

Offline kindhouse

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    • Kindhouse Properties Group, LLC
Rehabbers and Financing
« on: July 29, 2007, 08:56:48 am »
Hello,

When asking HML's, they tell you your offer should be ARV x .70 - improvement costs - quiet cost = max offer.

Do all rehabbers use this formula, or does someone out there suggest a different approach?

I want my offers to be realistic for the deal, but at the same time competetive with other investors looking at the same property.



Thanks,

Paul

Offline REI4ROI

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Re: Rehabbers and Financing
« Reply #1 on: July 30, 2007, 01:47:20 am »
This is the formula I ask my clients to use to get a more accurate guage:

BPO = ARV - Rehab Costs - BHS Fees - ROI

Best Possible Offer
After Repair Value
Cost of Repair
Buy/Hold/Sell Fees
Investor's Desired Return on Investment

Regards,

Scott Miller
RE Investment Advisor
Weichert Realtors
[email protected]

 




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