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Author Topic: Wholesale Reos Formula submit offers with or without repairs  (Read 1611 times)

Offline propace102

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,
 
Hey I noticed some investors leave out the repairs on your formula, i like that it makes you more competitive with the bank...do they use this formula?
 
65-70%  ARV?
 
Example:
ARV is 150,000
 
150,000 x .65= 97,500-(16,000 repairs do u leave this out) - fee 5-10 say 10= max offer to the bank of 87,500 is that how you would do it and tell the investor or home owners repairs ar 16,000?
 
This way i can get them at 87 or even 97 and sell  for 107 and still be a good deal to inv or 00?
 
 
WE BUY HOUSES !CASH! FAST!
San Bernardino and Riverside Counties,Ca.

Hooch

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Re: Wholesale Reos Formula submit offers with or without repairs
« Reply #1 on: June 03, 2009, 08:50:02 am »
$150,000 x .65 = $97,500 - $16,000 repairs = $81,500 - $10,000 (what you want to make) = $71,500 is your offer to the seller.

The 16K does not come out of the investors profit. The 35% that they make on the property includes profit and holding costs, not repairs.

Also, it is critical that you accurately judged the ARV for todays value as if an investor could list it after it is fixed and sell it in a month. Keep in mind that the properties that you are basing your ARV on could have been on the market for a year before they sold. If you don't accurately judge the ARV you will not sell the house to anyone.


Offline MamaKaranja

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Re: Wholesale Reos Formula submit offers with or without repairs
« Reply #2 on: June 03, 2009, 12:45:46 pm »
Is this where we look at the most recently sold properties in the area ?....find the average & use this as the ARV?

Hooch

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Re: Wholesale Reos Formula submit offers with or without repairs
« Reply #3 on: June 04, 2009, 04:58:44 pm »
Look here where I answered that question in a little detail.

http://www.reiclub.com/forums/index.php/topic,43212.0.html

 




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