I have a property under contract and having problems selling it. The home was hit by a tornado but the brick on the house is in good shape. Their is some mold in the property and the roof has some damage and need to replaced. But the comps in the area are 119000 and the owner is asking for 20000 and i put my 10000 on top for an even 30000. any suggestions? :banghead
I generally only add about $5k as my profit in deals less than $50k, I add between 10% and 15% as a profit on wholesale properties over $50k depending on the property, the equity position and whether I actually own the property or whether I just control it as this is the mortgage loan threshhold and less than $50k the property can't be re-sold using conventional finance methods!
Something that can not be lived in and has to be rehabed I would probable be happy to make $3k or $4k on as it’s not even in move in condition and will cost buyer to carry the property for months to complete their rehab work!
I only contract for properties where I have a buyer on my buyers list looking for that type, size and location of property!
you make very good points. I guess im a little over zealous because i see the potential in this house.