I have found an reo property that is listed for 130k county assessed value is @173K most repairs are cosmetic (ie paint, carpet, very minor stuff) seems like a good one to wholesale to an investor. I found an HML that will give 75% ARV, I really don’t want to fix and resell it, I just want to pass it to an investor. would this be a good one to get the HML and sell to an investor for 5-10K any suggestions please.
Dan
“county assessed value is @173K”
This is not what you are looking for. The only thing that matters is the after repair market value. The assessed value cannot substitute for market value.
Thank you for your input… I did check the comps and in the past 6-12 months homes that compare in size sold between 165k up to 190K.
is that more what I am looking for?
Dan
You make your money when you buy. If you buy for the list price, I wouldn’t consider this a deal. Let’s say the ARV is $177,500, which was right in the middle of the comps you gave me. You would be buying for 73.2% of the value of the property. This doesn’t include the repair costs, holding costs or advertising costs to sell the property. If you are going to sell to a homeowner, you may squeeze a little money out of the deal, but there is no room in the deal for you and an investor to make a profit at list price. Let’s say you offer $110K. Now you’d be at around 62%. Now it’s a different ballgame.
That is exactly the kind of info I am looking for!! I can’t thank you enough. Like everyone in here says “an offer can’t be accepted if it’s not made” so that is exactly what I’m going to do. The worse thay can say is no, right?
Dan
“That is exactly the kind of info I am looking for!! I can’t thank you enough”
Glad I could help!
“The worse thay can say is no, right?”
You got it!