I am trying to buy this property that was burnt with ARV 350k, Repairs 150k-175k, seller wants 100k and I will be using hard money to purchase and probablly use a realtor to sell. 100k is way to high but I don’t want to lose the deal. I am planning on paying him off after I rehab and sell it so he will get a 2nd mortgage. Any sugestions on price?
I don’t know enough about the deal to make a suggestion on price. I will say never overpay for a house. If you overpay you won’t miss out on the deal because it is not a deal. It is about the dollars. I want every house I make an offer on very badly at the price I offer. I don’t want it at all for 1 penny over it. The offer is not based on what he is asking and working down. It is build by determining what it will take to fix it up carry and sell it then your profit and what is left if the offer price.
REI should be analyzed in dollars and not emotions.
$175,000 + 100,000 = $275,000
$275,000 / 375,000 = 79%
Then you have to pay the realtor, hard money costs, other holding costs (which might be a long time in this economy), etc. Where’s the profit?
Holy crap…it’s RICH! We thought you got hit by a bus or won the lottery or something!
Yes, I am back poking around a bit. Been doing a million different things and busy as hell but decided to stop back and see what was shakin’.
Welcome back! :beer