First Deal

[Evan Kummer]

Hello,

I am currently in the midst of the first real estate deal. I have a property that the current assessed value is 168,000, and they are asking 144,000. I want to wholesale this deal by offering 135k and assigning it to a buyer for 140K. 

It is currently renting at 1300/month with ROI at 17%.

Since this is my first deal, would this be suitable investment for a buyer? I need an outside opinion. 

Thanks! 

Evan 

[Stephen Barton]

@Evan Kummer in my humble opinion I think you should first determine where you are getting the numbers from. When I look at properties to buy I could care less about what the assessed value is! What would that property sell for in your market in the same 1/4mi radius and same bed/baths. That is what I look at and then I use the old tried and true ARVx.70-repairs-(fee if wholesale)=maximum allowable offer(mao). I do not know about Canada but here in Indianapolis Indiana you cannot use the assessed values as they do not reflect market sales. In the end you need to determine that(with the help of a realtor if you do not have a license to access comparable sales). Let me know if you have questions I will try to help you!