NEED HELP POSSIBLE FIRST DEAL!!!!

Bird Dogs, Wholesaling
1

Hey guys this is my first possible bird dogging deal that I will present to my investors on my list. Tell me what you think the numbers are as follows (also let me know if I’m doing this correctly)

Subject property:
This home features 4 beds with 1 bath and 1246 square feet. Home needs some TLC, but is a great opportunity to fix and rent out for positive cash flow. This is also a bank owned property that the bank just wants to let go. I called the agent for more info and he told me he doesn’t have a estimated report for repairs but he can tell what’s wrong with it. He told me the foundation is messed up(don’t know what that means), every window is busted out (the house all boarded up by the way), the drywall has holes in it so you would have to do wall repairs and int. & ext. painting, and the a/c was stolen. He did throw a number out to me and said maybe 20k-25k for repairs ( I wouldn’t know, I haven’t gotten that advanced yet) so here are the numbers

Asking price: 39,900

I looked on zillow.com to get an Idea for some of the comps. I then took the ones that were the most similar to my subject property and went to the online property appraiser. I did property searches for the comps on zillow to make sure the bedrooms and baths, sqft., and sale dates were accurate and they were. These are the closest properties:

Bed/bath Sqft. Sold on Selling price $/sqft Dist.
3/2 1204 1/10/08 148,000 122 0 .48
3/2 1200 11/2/07 143,700 119 0.9
4/1 1380 12/7/07 115,000 83 1.26

Now that was the only 4/1 that was on there so I went down one(even though I know to try to get them as close as possible)

Now I did an average of those three and came out with 108 $/sqft and I did an average of the total 13 comps(including the 3) and came out with 136$/sqft. I multiplied those by the sqft. of my subject and came to a price range of 134,568 to 169,456. Now I get kinda confused from here so I don’t know if I’m doing this right but I average the two and came out with 152,012 as a ballpark number for this home to be worth.

Now I used the formula ARV*70%-repairs-750(finder’s fee)

152,012 * .70= 106,408 - (possible don’t know yet 25,000 repair)= 81,408 - 750= 80,658 will be the price my investor will possibly pay right?

I haven’t gone to the property yet to take pictures because that’s all I can do since I can’t evaluate repairs yet. Here is a link to view the property http://tampabayreo.com/foreclosures/?p=1675#more-1675

PLEASE LET ME KNOW IF I’M DOING THIS RIGHT (calculations too) AND IF THIS IS A DEAL TO PRESENT TO MY INVESTORS!!!

2

Hi. Are your investors rehabbers or are they looking to wholesale these properties? The value of that home is probably 145k. I am in Tampa and am familiar with the area. If you are looking to give this lead to an investor looking to wholesale this deal, you are going to have to set the price lower. I don’t really understand the $750 finders fee. If you are just charging a finder’s fee than you market the property for what you buy it for. Are you putting these properties under contract or are you going to give the investor the mls # and ask for the fee? Tampa investors are not looking to buy properties at 70%-repairs. What about closing costs? Are your investors cash buyers? If you are interested in learning how to wholesale and making 3-5k per deal, let me know. I can show you, for free, how to do this. You seem to have the excitement needed to succeed. Let me know and I will send you my contact info. This is not a scam. I do this everday for a company who has been wholesaling in Tampa for 8 years.

ps An agent should never be the one to tell you what’s wrong with a property.