ARV on new custom built homes

[Stacy Griffith]

Hello everyone,

I searched the forum for an answer and couldn't find it.

I recieved a lead on a listed property and am working on my first deal. Ive been going over the numbers and would appreciate any feedback.

Seller has 2000 sqfoot home circa 1980 in an amazing established neighborhood.  Asking price is 700k.

Quite a few lots have new middle class custom homes.  Comps average at 980K for similar homes that have been revamped.  I have not seen the property in person.  I know a few people personally who would buy, tear down and rebuild  to match the newer builds in the area.  Comps for the new builds range between 1.2M and 2.5M.  My guys average budget to build is 400k.  Their projects are amazing. 

What's the equation for a scenario such as this?  I want to wholesale this deal but without repairs how do I make this work?  I really want to do the deal with these investors because they build on average 30 custom homes annually and would most likely be introduce to the other custom builders in their network.  I have no doubt they would buy my deals as long as it meets their criteria.  

How do I calculate NBV ( New Build Value) MAO? and My fee?

I understand how to find ARV for everthing else quite easily, What am I missing?

[Jay Hinrichs]

if this is listed on MLS I fail to see any value you would bring to a builder.. they will already know about it.. through their realtor networks.. waste of time.. you need to find off market deals.. not listed deals.