All Forum Posts by: Brandon Roof

Look at what other similar properties have sold for within the last 6-12 months (this can me done on just about any major listing site).  When I say similar, think square footage (within a few hundred sq. ft.), age (within a few decades), bedrooms, bathrooms and other major features such as yard size, garage, pool, basement, etc.  Ideally, if you can find recently flipped properties that meet the above criteria it can help narrow your estimate.

Not to speak on Jaysen's behalf, but if you run this deal from the perspective of the flipper using your ARV and rehab estimate, the flipper needs to get it for the approximately $150k Jaysen stated (see calculation below).

$305k (ARV) * 65% (or 70%; the discounted rate the flipper desires) - $51,435 (rehab estimate) = $146,815 - $162,065 (flipper's buy price range)

Note that the flipper will likely need to come in closer to the bottom of that range as their rehab estimate will likely be higher than yours in order to protect themselves (ARV may be lower in their eyes as well).

I'm not sure if your math is correct here with the 30% return month-over-month.  In that case, you would have recouped your entire investment in just over three months, and that would mean you invested somewhere in the realm of $600 to purchase and convert the home for that to be true.  If for some strange reason that is the case, then refinancing may be a little silly.

The reason people tend to refinance is typically to free up some of that cash that has been invested in order to acquire more properties.  If your intentions are to obtain more rentals, then refinancing may be worth considering.

There could be a number of variables in play here that could impact their decision-making. Is it a public or private nonprofit?  Are they incorporated?  Do they have a governing board of directors?  Is it tripartite?  How was the property initially acquired by the nonprofit?  Donations?  Grants?  Investment income?  Bequeathed?

They may also be considering how potential buyers intend to use the property.  Will the other nonprofit create a shelter for victims of domestic violence versus a for-profit entity that will use it as a rental property or commercial storefront?  In this case they may view the former as their duty to the community.

If money is not the driving factor, find out what is.  What is their and the other nonprofit's missions?  How does it conflict with your intentions?  Bridge the gap and enlighten them to the value you will provide them and they in turn can provide greater services to the community.

Congrats!  For your virtual staging did you utilize an app or service?  What was the approximate cost per room/photo?

These are kind of conflicting things.  A "great" deal, in my mind, would imply that the numbers work when taking all variables into consideration, such as the foundation example you provided.  If it needed a $30,000 fix, and I've included that within the calculation and it still well exceeds my criteria, then it could be viewed as a great deal.  Calling something a great deal then adding on all the things that are going to cost excessive amounts of money or compromise your criteria would inherently negate it being a great deal.

This will vary greatly from person to person, their unique situation, comfort level with debt, etc.  Removing all those variables, if the interest rate on your debt is greater than the rate of return on any potential investment, then eliminate the debt first.

It may be good to provide them additional insight as to your long-term aspirations surrounding real estate.  This could build the foundation towards a stronger relationship and may expand their offerings towards you when a situation arises where you'd like to purchase an additional property.

You are on the right path.  Stick with your gut reaction and don't let emotion or outside forces impact your decision.  With no other offers, the seller can either take guaranteed money now or wait it out the next few months, slowly dropping their ask to what you offered months ago.  Don't allow them to try to back you into a corner.  You are in the power position.  If the deal falls apart, you can rest easy that you didn't compromise your financial situation by giving in to others that have ulterior motives.

That's a lot to juggle. Acclimating to a country halfway across the world while raising a young family. I am by no means a financial advisor, but if I found myself in a similar situation, I would start a Roth IRA, putting in the max contribution each of the next four years ($6k/year). Toss it in an a few broad ETFs or if I wanted to be a little more involved, picking a dozen blue chips and a few REITs to get my real estate fix. Best off luck on your next adventure!