Phoenix Area Formula

[Bob Nesbit]

Hello all!

Im new to real estate investing and looking to do rehabs. I have read a few books, and listened to several tapes, DVDs, etc. They all seem to say my purchase price should be 70%ARV minus the repairs. I have had quite a few Wholesalers and Real Estate Agents send me lists but none of the properties even come close to that formula for my purchase price. And the people I have spoken to say this is a "tight" market.

Should I be patient for the right deal? Or am I using the wrong formula in the Phoenix area?

Thanks for any input!

[Albert Hasson]

bob, it is a tight market here.  I have been doing 2-3 flips a year consistently for the last 4 years here in the metro phoenix area.  This year it will only be one and I have nothing in the pipeline.  The numbers just don't make sense right now.  People will tell you there are always deals to be found and that's true, it's just a matter of how much time you want to spend finding them.  I work full time and I value my free time so for me personally it hasn't been worth the effort it takes to find a deal right now.

Good luck!