I have been doing this for a few months now, and the investor i work for has a confusing spreadsheet formula. I am going to be building my buyers list, but i need to know if my formula is good.
Arv-65%-repairs($13 a square ft)- assignment fee=offer
I will let the seller know that i would still have to video the property to get a true figure on the repairs.Let me know if this is a good formula or not. I want to make sure i do not pass up deals, due to my lack of knowledge of what to figure on repairs.
“Arv-65%-repairs($13 a square ft)- assignment fee=offer” … I think you MAY mean (Arv x 65%)-repairs($13 a square ft)- assignment fee=offer. With your original formula my sellers would be paying me to take the property off their hands. But, if you can get then that low, more power to you. Your figure of $13/sq foot for repairs may or may not be realistic depending on the area and condition of the property and the specific repairs that need to be completed.
jmd_forest
I agree with the repair portion as is evident in the following examples we experienced on 2 rehab projects we recently completed:
Rehab #1: Property was 2,718 SqFt and it needed approx $70,000 for repairs or about $25/SqFt.
Rehab #2: Property was 1,500 SqFt and it needed approx $18,000 for repairs or about $12/SqFt.
So the point is it definitely depends on the area the property is located as well as the extent of repairs needed.
Good luck.
Jason Stackhouse
J&R Investments Group, LLC