Hello all,
In everyone’s experience what are a couple of the tell tale signs that a house needs to be torn down and cannot be repaired??? I know most ugly houses look like they’re ready for the bulldozer but it seems like a fine line to balance when trying to find a wholesale deal.
Thanks,
Joe
I have found this to be a math question and a “whats your skill level” situation. I started buying homes that home owners wouldn’t buy because they had “real jobs” and no time, money, or skill to remodel.
My competition for these properties were builders who wanted the dirt for new homes, I would pay more than they would because I looked at the BDQ or bull dozer quality house as an asset and builders looked at it as an liability.
The remodeled home has to provide a substantial profit for me, hence the math part, in order for me to buy it.
If the home I was bidding on was also being bid on by an end user or some one who wants it for their “new home” after remodel then I would lose the bid as they would pay more being end user and not in it to resell for profit.
Yes it is a fine line, but for me it is: Purchase Price +Rehab,Holding,sales,financing costs = at least 30k less than a conservative retail price. So far So good, Darin