Potential Rehab Project

[Guy M.]

Hey everyone...

I was offered a deal to rehab a property built in 1909. It is worth around $610,000+ APV. The seller is asking $374,000 for it and I informally counter offered $345,000. The seller no longer lives in the home and has moved to NJ. I am a new investor located in Virginia and I am pretty sure I can raise enough cash to purchase for $345 - $350,000, but not that sure. I am about to have a conversation with a hard money lender located in NY to see if they would back me on the deal, if not, due to lack of experience, I am willing to bring in an experienced investor to help me in the process. I am looking at a 70/30 split in profits (30 for me). The seller's agent is relaying my offer now, if not already. The seller wants a conventional sale.

If there are any investors in the VA area that are interested and experienced with rehabs, drop a line.

This is what the figures may look like:

Offer: $374,000
Counter: $345,000
Est. Repairs Needed: $100,000
APV: $610 - 620,000
Est. Money Needed: $435,000 (price + repairs + closing costs + cushion)
Low Est. Profit: $80,000 (my share = $24,000)
High Est. Profit: $140,000 (my share = $42,000)

When it's all said and done, I will research the property and provide some solid information. This info is based off of comparables in the area, so I know the agent was correct in his assessment.