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Category: Inspirational Current Grade: B+ Total Views: 295 Member Comments: 2 |
Posted on: 04/16/2008 Posted by: chase Blog Points: 9 View all blogs >> |
to whoever reads this. i plan towalk you/me through my 1st deal. i have a house under contract & im expecting the best, but trying to remain light on my feet to tackle any problems that might arise. failure is not an option. i want to move this house now!!!!! so far i showed it to 2 people looking to move in families. they say too small, i have an investor comin to see it tonight. he sounds promising so well see. the situation is i got a s/f---3/2 under c-tract for 200,000. market value is well over 300. it needs 10-15 in repairs. i plan to fetch 225-230. anything over 2 is profit. i cant wait to get on the other side of dat door!!!!ooooohhhhhhh!!!!! im so excited i'l die if i crash from all the anxiousness i feel. still cool thouhg, gotta be cool. later.
1. Thanks for sharing and being honest about the details.
2. Brad is correct.
3. Work the deal you have so you come out on the other side. You will learn from the process. Remember that you will be doing other deals in the future so get used to getting the deals done and moving on. Do not try to hit a home run with any one deal. Get them over the line and count the profit after it is in your bank account.
John Corey
Most investors won't buy anything less than 70% LTV after repairs. So that means with your house: (Assuming your values are correct)
$300,000 ARV x 70% LTV = $210,000
$210,000 - $15,000 for repairs (which is probably to low) = $195,000
$195,000 - 10% (Normal wholesale fee) = $175,500
In a perfect scenario, you should have bought the property for $175,500 and sold it for $195,000 which would have netted you around $20,000 in profit.
That doesn't mean you won't get what you are asking for. I don't know your area, what percentages investors will buy in your area, average home prices, average days on the market, and other factors. I was just giving you a break down by which I would figure a deal up in my area.
You may be able to sell it retail for that price if people want big discounts for their own home and can do the work. Just a thought.
If your investors are telling you no to your price, ask them what they would have bought it for to get an idea of what their looking for.
If anyone else thinks I'm off the mark on the numbers, please let me know.
B