All Forum Posts by: Chris Colvard

Are you thinking the value will go down further in 4 years?

Anyone else have any good rehab takeoff forms that I can use as an example and have them made into pads?

Mike,

I took a Texas SAFE act class last night and the usury in Texas is now 18%.

Are you using a licensed mortgage broker to close these deals? The disclosure laws are unreal. The cost to use one is about $450.00 and they do the disclosures. Also, you E & O protection in front of you. I would also use an attorney so that you have that E & O protection.

Some fun points are:

- 7 day waiting period after disclosures are made.
- Closing cost estimates cannot be more than 5% off.
- Another 3 day waiting period if anything changes in the contract.
- No mark up on title or credit report fees.
- Must impound taxes & insurance under certain loan terms.

You can do 5 seller financed deals per running 12 months, but are still required to do all of these disclosures. Fine is $25K per occurrence if you get caught not doing them.

Raul,

You will probably assign the contract and not do a double close, so the investor will be paying non-seller paid closing costs.

The main thing is to know the numbers on ARV, rehab and closing costs, then always try to offer a maximum of 60% (less is better) ARV less these costs.

Don't forget liens and back taxes, these will be deducted for the offer price, but on the seller proceeds at closing. You just need to be aware of this or it can bite you.

ARV = $100,000

X 60% Min = $60,000
Less Repairs = $10,000
Less Closing = $3,000

Max Offer = $47,000

Potential Wholesale Profit = $10,000 (then you can expect to make at lease make $3,000 on it)

You need to have room for contingencies (mistakes) and to negotiate with the end buyer.

Welcome to BP!

How are you going to find your deals?

Tommy,

I put some contracts in the fileplace:

Wholesale Purchase Agreement

Wholesale Assignment

Awesome Carlos!

Thank you! Talk to you tomorrow.

Stinson,

That will be perfect!

Thanks

Chris

Hey Rob,

Since there aren't any in the fileplace, that might be better for other members.

Thanks would be great!

Hi:

I need a efficient form that is 8.5 X 11 when I do my inspections to estimate rehab costs. I don't need a spreadsheet, but just want a checklist so I don't have take notes. I would really like to have them made into pads so they look very professional.

I really don't like the seller seeing my chicken scratch notes, rather have a form that looks very clean.