:o
Need Help on a deal fast please!
Found motivated seller.
Est value of house 120K
She’s asking 102.5
Loan amount is 80K
Repairs minimal less than 5K, just paint.
Exit Strategy: wholesale to another investor.
What do you guys think? Is this a good deal? How much should I assign my contract for?
Mo
Not a lot of ‘room’ in this deal…if you buy for $102.5K, it needs $5K of work, and the value is $120K (by whose estimations?), there’s only $12.5K and you haven’t taken an assignment fee or had any closings…there’s been no accounting for the other investor’s profit, for holding costs (regardless of who the cost is apportioned to), or closing costs between the other investor and the new owner…conventional wisdom says that you’ll want to pay no more than about $79K minus holding/closing costs for this property. I can work a little tighter so maybe $90 - 91K minus holding/closing costs for or so for this…
My two cents…
Keith
Too thin of a margin. I would not do this without doing detail cost analysis. Like previous reply, you need to show your investor that after your assignment fees he will have equity left and property in good condition.
I would ask her to go below 90k for you have efficient deal.