Hi Guys.
I’m a newbie investor in the RE biz. I started last summer by buying a duplex (buy and hold). This is my first effort as a wholesaler, so I would be interested in any feedback (does it create value for you as an investor?).
Property Details:
3 beds/2 bath bungalow
Just over 1000 sq ft.
ARV 118K.
Needs a new roof. Inspector estimated 10-12K in repairs.
Asking 70K. There is tenant in place and he wants to stay. Long story short, it’s the previous owners son and he is not paying rent. Two bed/1bath around the corner recently rented for $900/m, which would provide about $500/m cashflow.
Please let me know if there is any interest and I would welcome any constructive advice.
Stephen
Try to get it for 60K, use a small earnest deposit, under 20 buks and you have minimal risk. Get it on contract for 45 days and market the hell out of it for 10K more than your contract price.
Good luck.
Thanks for the thoughts Randy.
I already have the property under contract, so I am good to go. This is really the beginning of the marketing process for me. As a newbie, I am looking feedback/reinforcement on the pricing. ARV of 118K x 70% = 82.6K. Minus the cost of repairs, 10-12K = 70.6K. I guess I want to know if this brings value to the marketplace and to see if anyone might be interested in the opportunity.
I have created a postlet and have put an add on Craigslist. Do you have any other suggestions for marketing the crap out of it.
Stephen
Those numbers are too tight for me. I try to get wholesale deals that are 50% of ARV or less, and maybe that’s why I’ve only done 17 deals in 2 1/2 years. However, I may go up to 60-65% to get more deals flowing.
I mean why not, its no risk, but, if I cant sell them its a big waste of everybody’s time and can really piss off the seller. But a few times I came back and told the seller, I can’t sell it, the price is too high, and then I’ve got a much better price to work with and they eventually sold. I give it 2 weeks, If seller is unwilling to lower his price its best to move on.
To market the crap out of these, your going to need a few more email addresses to place ads in Craigs list. You place one ad and after a few hours it is at the bottom of the ads and probably wont be seen by busy cash buyers/Investors.
With multiple ads going I can always get my ads near the top. Space them at Morning and lunch and evenings. Also place ads in nearby cities, some of these investors find your area is cheaper and they dont mind out of town investments.
I’ve found that deals at 70-80% of ARV not too many people are excited, But if it’s at 50% of ARV the phone starts ringing.
Thanks for the Craigslist tips. I’ll try the multiple addresses to keep the momentum going.
Any other suggestions?
Stephen