When buying from wholsalers is it common to pay the same price as the town’s appraisal? The FMV in this case is 60k more, but house does need some work, maybe15-20k.
Is there any more info on the deal?
It is hard to say without all the info!
Call it what you will I pay my wholesalers/Birddogs about $1,000 per $10,000.00 No more no less!!
This is a house that needs 10-15k worth of work to bring it to the top of the neighborhood. It was purchased by a larger REI group and they are now looking to sell it off as their crews are too busy.
It just seems odd to me that the price they would be willing to “let it go for” is the same as the town’s appraisal. I plan to check the town records to see if they have filed the transfer yet. But I was wondering if anyone else had encountered this situation.
reoconsultants, Do you buy from other investors with the intent of rehab?
I find most investors are way overpriced on their projected After Repaired Value (ARV). New investors usually don’t have the resoures to get a true value, and rely on what the investor is telling them. BIG MISTAKE!
Then they overimprove the property or the improvements needed cost MUCH more than they expected.
Now they are upside down in the property and end up having to take a hit when they sell.
My personal opinion is you cannot make $ when buying from or selling to other investors.
Jan