All Forum Posts by: Chris Colvard

Your comps state average for this area $50,000.00 retail. This is ARV.

Wholesale deal is maximum 70% which is $35,000.00

Is it a deal to a rehabber?

ARV @ 70% = $35,000.00
Less contract = $8,000.00
Less rehab? Based on this, max rehab dollars is $23,400.00
Less wholesale Fee? Say $1,000.00
Less closing Costs? Say $1,500.00
Less holding cost? Say $600.00

Do you think this is a deal if it is a tear down?

If this a 1,000 sf dwelling? $23,400.00 / 1000 sf = $23.40 sf for rehab. I doubt you will have any takers on this as a wholesale.

Sorry, what is the wholesale price based on ARV after you have the comps your stated?

From your research, what is the ARV less repairs based on your comps?

Seems like if you provide appliances then additional security deposit is required.

How much deposit did you require on a $1,200 month lease?

Search wholesaling on BP. Yes you can do it.

You are right. I does depend on the city. If they are broke, and they have you over a barrel, then it's not as easy as stated above.

I would still have to ask them for 10K discount or I can't close. Get to the right person with a check for $56K today, see if you can't get a response.

Just a thought.

You also have the option of promoting to actual wholesale cash buyers that have recently purchased around your property.

You can tell wholesale buyers by average retail price vs. sales that seem much lower on mls comps. Then use tax database to find them, the address is never the same as property address.

Sounds complicated but it is as simple as locating them via tax database and sending postcards within 24 hours of your contract.

In a perfect world you already have buyers, but if you don't what's next?

Yes, thanks for your comments Will!

It's a slower dime.

There is also something I have found on an apartment deal we bought.

It seems that there is a negotiating point with the city (at least in Dallas), to come off the the amount due to have the property rehabbed with a new owner.

Seems there may be value knowing how to negotiate the discount with the city.

At least here, there is a process between violation and lien. That appears to be a sweet spot.

Is this the case in other areas?

I want to determine if code violations are good for wholesaling.

Are these types of deals worth anything to rehab guys that buy wholesale deals?

Any experience on the subject would help me determine if it is worthwhile to work these types of deals.

My main question here is given the red tape to work them, is there value for the end buyer?

Why not contact some portfolio lenders in your area and finance the package?

Leave them in the LLC name. You already have a track record.

If your broker doesn't know how to find portfolio lenders, then get another broker.