All Forum Posts by: Alexis Edwards

@Jerry Padilla

The value of the land is only about 20k. After looking at vacant land comps, we concluded that there was no way we could offer more than 25k. The seller wasn’t going to budge after claiming she already received a 70k offer, so we have moved on! But thank you for your help. It was at least a learning experience.

The seller seems emotionally attached to the property because of the damage, and she felt that the government cheated her once all was said and done. They didn’t give her enough to fix it. She also claims she has a 70k offer that she’s been sitting on for 2 weeks, but I think that’s just her way of getting me to come up in my offer. 

Thank you for your help! If I find anything over there I’ll definitely be in touch!

@Matt Michaelson I think they are just starting to consider selling. They aren’t very motivated at the moment. Thank you for your help!

Well I took that land value from the assessor’s website. However, I did look up vacant land comps in the area, and based on price per square foot, it would come to about $63,000. After cost of demo, it’d be an offer of $53k. Which value would you go with?

After looking at vacant land in the area, all prices are between $20k-30k. However, this lots were significantly smaller. Looking at price/square foot, it would put this lot at $63k.

@Frank Geiger If the building were to be rebuilt as a four-plex, the rent would come out to $2,500 total. The seller is willing to do financing, which I thought would be a great way to make a deal. However, I didn’t know if that was a good route in case the buyer decides to flip it.

I am a fairly new wholesaler and I need some help analyzing a deal!

This house was severely damaged by Katrina and abandoned ever since. It is located in St. Bernard Parish in a historic district. Currently, it is a 4-plex with (1) 3 bed/1 bath and (3) 1 bed/1 bath + laundry room and grass for parking. Due to the extreme damage, I'm sure the buyer would tear it down and build a new structure. I was advised by a builder that re-building would be somewhere near $100/sq ft because this neighborhood is not exactly high end. So with current square footage of about 2,900, that leaves me with $290,000 in repairs. Looking at the comps, the average sale price is $170/sq ft. My issue here is that a house that large would come out to be much more expensive than any recent solds, even though its the same price per square foot. I'm not sure how much of a problem this would be. It would also all depend on what the investor would rebuild it to be.

The seller ultimately wants $70k for it. If this house were to be built and flipped, keeping the same amount of square footage, it could be a deal at 80% ARV. However, I'm struggling with how to comp it for a multi-family property because an investor could go so many different ways with it. For instance, they could rebuild it exactly as it was, but they may also be interested in building it as a double or a triplex, etc.

I tried offering the seller the land value of $25k, but she was offended by that and said no less than $70k.

What are your thoughts? Deal or no deal?

I am a fairly new wholesaler and I need some help analyzing a deal!

This house was severely damaged by Katrina and abandoned ever since. It is located in St. Bernard Parish in a historic district. Currently, it is a 4-plex with (1) 3 bed/1 bath and (3) 1 bed/1 bath + laundry room and grass for parking. Due to the extreme damage, I'm sure the buyer would tear it down and build a new structure. I was advised by a builder that re-building would be somewhere near $100/sq ft because this neighborhood is not exactly high end. So with current square footage of about 2,900, that leaves me with $290,000 in repairs. Looking at the comps, the average sale price is $170/sq ft. My issue here is that a house that large would come out to be much more expensive than any recent solds, even though its the same price per square foot. I'm not sure how much of a problem this would be. It would also all depend on what the investor would rebuild it to be.

The seller ultimately wants $70k for it. If this house were to be built and flipped, keeping the same amount of square footage, it could be a deal at 80% ARV. However, I'm struggling with how to comp it for a multi-family property because an investor could go so many different ways with it. For instance, they could rebuild it exactly as it was, but they may also be interested in building it as a double or a triplex, etc.

I tried offering the seller the land value of $25k, but she was offended by that and said no less than $70k.

What are your thoughts? Deal or no deal?

I am a fairly new wholesaler and I need some help analyzing a deal!

This house was severely damaged by Katrina and abandoned ever since. It is located in St. Bernard Parish in a historic district. Currently, it is a 4-plex with (1) 3 bed/1 bath and (3) 1 bed/1 bath + laundry room and grass for parking. Due to the extreme damage, I'm sure the buyer would tear it down and build a new structure. I was advised by a builder that re-building would be somewhere near $100/sq ft because this neighborhood is not exactly high end. So with current square footage of about 2,900, that leaves me with $290,000 in repairs. Looking at the comps, the average sale price is $170/sq ft. My issue here is that a house that large would come out to be much more expensive than any recent solds, even though its the same price per square foot. I'm not sure how much of a problem this would be. It would also all depend on what the investor would rebuild it to be.

The seller ultimately wants $70k for it. If this house were to be built and flipped, keeping the same amount of square footage, it could be a deal at 80% ARV. However, I'm struggling with how to comp it for a multi-family property because an investor could go so many different ways with it. For instance, they could rebuild it exactly as it was, but they may also be interested in building it as a double or a triplex, etc.

I tried offering the seller the land value of $25k, but she was offended by that and said no less than $70k.

What are your thoughts? Deal or no deal?

I guess that's my issue - not knowing the rehab rate per sq ft. I'm fairly new so while I attend REIA meetings and listen to the webinars, I need to meet some contractors. Do you have any other recommendations for learning this kind of information?