I am a newbie to the bird dog thing. I have found an investor who wants houses that have 25% to 30% equity in them. What is the simplest way to word this. Is this the same thing as saying they will pay 70-75% LTV?
You need to know that if you can get a contract at 70% af value or less YOU should buy it not sell the contract…
Most new investors dont know where the money comes from to do the deals so they think that selling contracts is the way to go…
Please go to someone and have them teach you… assignments are the most expensive form of investing…
Good Luck
Michael Quarles
I’d have to second what Michael is saying. My recommendation would be to maybe create a partnership or something with an investor that knows what to look for in potential investments. They will probably be more than happy to help you out since they know that you will then be able to save them time and identify prime investments for them. It’s a win-win.
Yes, 70 - 75% LTV is the same as 25-30% equity. Keep in mind repair costs also come into play. Typically rehabbers are looking to pay 70% LTV - minus repair cost (or less).
don’t forget to also subtract your wholesale fee. Bandit signs will be better cost wise