IS this a good deal!!

Hello All:

I think I found my first deal. I’m just praying that I can get the financing to go through. Heres the deal. I found a property in an area thats growing rapidly.

ARV $140k
Est Closing and Renov Exp: $21,000
Offer Amount: $68,250
Projected selling price: $126,000…10% Equity for new owner
Total cash investment: $89,250
Proj Net Profit: $36,750

I have my contractor lined up and an agent to put the home on the market. My goal is to make at least 20,000 in profit. I say 20,000 just in case I have any unexpected expenses. Im just waiting to see if a hard money lender will approve the deal. Does this sound about right I have been studying and trying for a year now and I am ready to get out there and start doing my own deals. All suggestions and opinions accepted.

Thanks Guys you all are really encouraging and very supportive. Looking forward to hearing from you.

It sounds like a deal I would look hard at. Good luck and go get em!

thanks…I am going to try. i have been studying it over and over and it seems ok

I didn’t see your Realtor Fees on your calculations but base on your estimate profit of $20K you have factored that in. The Hard money could cost you from 7 to 10% of the loan amount. Carrying costs could add up if you don’t sell right away. Once you have the property listed the Realtor will probably push you to accept lower offers or to have you help the buyer with closing, which will mean lower profits. To me this seems like a marginal deal not a good deal.

I am not trying to discourage you because real estate is the way to go and you learn by making mistakes. Just don’t make a critical mistake.

Good Luck!

you should be able to make $20k no problem unless your renovation cost are way, way off.