Determining Net Profit on This Fix and Flip

[Sheldon Alex]

Good day Bigger Pockets community. One of my skills in real estate is underwriting real estate opportunities. These deals I analyze have come from borrowers looking for private money. Thus, I thought I share another one with everyone. More to come...

Sometimes you hope for the numbers to work on behalf of your borrowers. However, the data doesn't lie.

In this example, the borrower estimated the ARV between $270k to $300k.

However, a few of her comps she shared included:
- Properties crossing major streets
- One property pending (NOT SOLD)
- One property sold, but over 350 sq ft apart in size from the subject property

Now I'm not going to say I get it right every time. However, I usually go the conservative route when comping deals (NOT based on speculation or exaggerated predictions). Not to say that's what this borrower did. But some do.

I discovered the ARV being between $250k to about 260k for the subject property give or take. And for what she was offering, there was NO MEAT ON THE BONE.

Thought I'd share this with everyone for education purposes. Any feedback on this deal is highly welcomed.