All Forum Posts by: William T.

@Lawana Anderson What will the investor gain by buying this property from you? The buyer has to be able to make a profit just like you. To wholesale a property the 65 to 70% under ARV must be applied for the buyer (investor). The only way to make a deal on the MLS is to be a distressed property and sometimes not even then. I would take a look at the Beginner's Guide to read up on this information.

http://www.biggerpockets.com/real-estate-investment-calculator

@Lawana Anderson I happen to just see this was under wholesaling...don't waste your time. This is not a deal unless the property is being marketed below ARV. Here is a scenario based on the info provided...

ARV $138K - 70% $89,700 - Repairs $0 (make it easier) - Profit $5,000 = $84,700 would have to the the contract price. This is making it easy for you because there are always repairs.

So what will your asking price be? If it is on the MLS, you will more than likely have to take off 6% off the top for the agents involved. So from there... We will apply the 50% to see if it will cash flow properly, find out what the HOA fee's and the rest of your expenses. According to BP Nation, condos rarely cash flow because of the HOA fees so be very careful and know your numbers. Just based on the information provided using the 1% rule, can you rent this property at $1380.00. ($138,000 ARV)

@Edgar Aguillon Welcome to the BP community, have you tried looking at the Hud homestore website for a duplex. They probably have some in your area and you can have equity built in before you even start.

http://www.hudhomestore.com/Home/Index.aspx

@Lawana Anderson welcome to the BP community, can you post the numbers to make up the deal? I am interested in this answer too....

Welcome to the BP Community, I would highly suggest getting educated first. Spend some time on BP for a week or two. This will give you an idea of which direction you would like to go. There are a ton of different strategies on BP that you can learn. You can start off with the Beginner's Investment guide below.

http://www.biggerpockets.com/real-estate-investing

Good luck to you and enjoy your road to success... BP will pave the way for you.

@Mark Nouveau Welcome to the BP community... Have you heard of the 50% rule, it doesn't appear to meet it. I would suggest an offer price of $240K to provide a very good cash flow and provide more equity in the property. I am currently calculating your PITI @ $1892.53 and expenses at $17,704.92.

http://www.biggerpockets.com/forums/52/topics/16385-5-rule

@Jessica H. You could search the forum and put in yellow letter... you will receive a ton of threads on this. What are you trying to target with the your yellow letter because this will also make a difference too. You can also go to @Jerry Puckett website and take a look at a yellow letter. He is an excellent source because he is an experienced wholesaler. Good luck to you...

@CHRISTOPHER MIDDLETON My hat off to you because you have a tough job... I was surprise to read this post because this is going to be my niche. I am currently learning Spanish to rent to the population and also to work with an immigration lawyer to provide "best product best price" for the Latino population. No, I would not rent to a gang member but I also don't have a gang problem in the STL. Most of our latin population are very hard working but have the same problem of getting people to rent to them. Illegal or not, we are all still human and deserve the dignity of somewhere to stay if we are making an honest wage.

Welcome to BP, can you provide a few more details such as maintenance costs, are you paying cash for this property, etc.... Does it meet the 50% rule? What is the ARV of the property, will you have property management, sorry for all the questions, it will provide a more accurate answer. Also take a look at the investment calculator...

https://www.biggerpockets.com/real-estate-investment-calculator