Hi everyone
i’m pretty much a newbie at this just been trying to read as much as i can about all this. how do I calculate if the things I find are good deals? is there a certain equation that I have to use to check if what i found is a deal or not. I heard that there is actually an excel file that i can use to find this out… any help would be great. thank you
what’re you planning on doing with it? flipping, renting, wholesaling?
i plan on wholesaling it to another investor
then you need to find out what other investors in your area are buying at. I’d say a good rule of thumb is below 70%FMV and you’re in the green. for a wholesaler 60% should be about the safe zone. and this is after repairs.
so basically for numbers sakes if a home is 100K needs 10K in repairs offer 55K, the 5K buffer being miscellaneous fees you might encounter just to be safe.
might wanna invest $300 in getting steve cook’s wholesaling real estate course, small price for a lot of info, I got his version one a couple years ago and it’s priceless.
thank you…
scenario
ARV=$1,550,000
1st mortgage =$1,000,000
repairs=$10k
good deal?
What is the seller asking? Are there buyers at this price point?
if you can get a buyer. In this type of transaction you’ll need to do an option with the seller and structure a deal for the buyer.
The hard part about million dollar deals is that there are not many people that can afford to buy them. You have to know what you’re looking at as well as what the buyer wants.
Do you already have a buyer in mind? If not how do you plan on finding one and getting paid from the deal?
I agree, if you give an option with the seller the deal would be better, but let me say that the amount you guys will be dealing makes me ill. Huge $$$