I found an investment property in Chicago’s Northwest Suburb. It is currently bank owned. The asking price is $209,000 yet willing to accept $160,000. Comps are well over $250,000.
It is in need of some rehab with an estimated cost of $40,000.
I am willing to do all the legwork from: contracting, marketing, inspecting, selling, listing, etc.
The ideal candidate must have a credit score of 650+ and willing to share the profit 50/50.
Where would be the best place to look for a credit partner?
Have you ever done a deal in the Chicagoland area? What area of the NW Burbs is the property located.
What are the days on market average for the area, who will be paying the rehab and holding costs?
Getting the property for $160k may not be low enough (especially in this market). You need to be 110% sure that your $250k comps are accurate AND that $40k in repairs is also correct.
Be sure you know how long it will take you to get it fixed and also how long it will take to sell once it is complete. Holding costs can chew up profits very quickly. (250k * 70% = $175k minus $40 = $135k MAO)
Chris
I could negotiate the cost down. I’m sure that’s not a problem. I just found out that in 2008 alone within .1 miles from this property 3 homes sold for $200,000-$300,000. Which encourages me to follow through with this investment.
I had 3 general contractors estimate the repair costs and was given the same amount.
My only problem is I won’t be approved for the loan because of my low credit score. I really do not want to loose this opportunity. Any ideas?!?!