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Author Topic: 1st wholesale deal  (Read 2084 times)

Offline mbuford

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1st wholesale deal
« on: June 04, 2008, 07:10:17 am »
There is a house in an area where the comps are pullng between 92k-109k. However b/c this is a warzone not many homes have sold recently the comps are mainly from late 2007(oct-dec) If i'm not mistaken the formula to determine the offer price would be as follows: ARVx65%-repair costs=highest price to buy property. The land is worth 12,000. I'm not sure how to estimate the repair cost but the home has been abandoned for 3 years, and looks like it needs to be completely gutted. Any suggestions or creative ways of wholeselling?

Offline cdp1

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Re: 1st wholesale deal
« Reply #1 on: June 04, 2008, 10:43:09 am »
Mbuford  a word of caution do not use comps from last year banks or whomever ends up putting money for this deal will want to look at comps from the last few monts. Now if no recent sales in the area, do not use the 65%ARV formula, instead reduce the formula by 10-20%.  Good luck.

Offline TheDealMaker

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Re: 1st wholesale deal
« Reply #2 on: June 05, 2008, 01:06:13 pm »
Your formula sounds pretty good however, it is missing one key issue.....

    ARV x (50-70%) - Repairs - YOUR PROFIT = MAO (maximum allowable offer)

  Hope this is helpful.


      John

Offline kdhastedt

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Re: 1st wholesale deal
« Reply #3 on: June 05, 2008, 01:23:19 pm »

Nope...conventional wisdom says that the "X (50-70%)" IS your profit!

You've gottten to the point that you'd NEVER find a property!

Keith
I have CDO...it's like OCD but in alphabetical order - the way it should be!

Offline ericmedem

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    • Real Estate Wholesaling Guide
Re: 1st wholesale deal
« Reply #4 on: June 09, 2008, 12:51:36 pm »
Before making any offer I would recommend that you have buyers lined up ahead of time.  Warzone areas require a very specific type of buyer so I cannot recommend finding them ahead of time enough.
http://www.InvestorsPlayground.com Now FREE!  Just type in your email so I know where to send your FREE 1471 Page Investors "Holy-Grail".  (It's NOT $97 anymore)

 




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