WHEN i PRESENT A HOUSE TO AN INVESTOR WHAT KIND OF DEAL DOES HE WANT THAT I CAN GUARENTTE A WHOLE SALE
IF ITS 70 PERCENT ARV FOR INVESTORS WHAT SHOULD IT REALLY BE SO I CAN MAKE MONEY ALSO
PLEASE ANSWER IN PERCENTS AND MONEY
First, a little Internet etiquette or Netiquette for you - using all caps is the same thing as shouting.
Second, I use 5% for me so if you are using a 70% ARV minus repair cost formula for the maximum allowable offer (MAO) to a rehabber, you can use 65% ARV minus repair cost for your maximum offer to your seller. You need to find out what rehabbers around you are using for their MAO formula.
Curiousitygirl,
The post you already got has some good advice.
Are you planning on taking an option on the properties and then sell the option to the investor or some other way? Maybe do a double closing? if you haven’t decided for sure the option route is the least risky although you will likely make less money.
Good luck,
donrock
Actually the 70% for investor model is 100% busted. If the deal makes sense then it will sell plain and simple. Also CAPS MEANS YOU’RE YELLING!!! So let me give you an example in % and $…
Your price 60k needs 10k in rehab worth 100k…well this is a no no all day.
Winner: Your price 25k needs 5k in rehab add 5-10k for you worth 100k.
Get it got it good.
Good Luck
What is the bottom line investors want a house that is 40,000 less after estimates —30,000 less after everything ???
That way when I get out ther I can say well after all the calculations this is only 30,000 less he wont take it etc
what is a good number i can figure out my own commission from that
Bottom line is you need to ask other investors on your buyers list what their MAO formula is. Your fee is called an assignment fee, not a commission.