All Forum Posts by: Keith Saunders

Laurel, Here is the formula I use to get my numbers.

$150k ARV
-35% (20% Profit, 15% Closing/Holding Costs, Etc)
-Repair Costs
-My Assignment Fee
=Maximum Purchase Price

or

$150,000
-$52,500 35%
-$40,000 Repairs
-$10,000 My Assignment Fee
-----------
$47,500 Maximum Purchase Price

I would assign the contract for $10,000 for a total sale price of $57,500.

The Investor has a potential profit of 20% or $30,000.

If it doesn't sell at that price I can lower the price $5,000 and still make $5,000 on the deal.

Hey All,

Looking for a low cost, reliable Transactional Funding Source to fund my Wholesale deals that require a double closing. Mostly due to not wanting the seller to know how much I am making for assigning the contract to another investor.

Thanks Keith

Sit down with them to review what their concerns are. And if possible address each one.

But you can come across as know it all or make them feel pressured. Sometimes they just need someone to tell them "its ok, your making the right choice"

Hey All,

Working my first deal, the seller refuses to pay any closing costs. So, if I sign the contract with this provision of the buyer paying all closing costs. Will that make it difficult to wholesale to another investor? Or is the price the only thing that matters?

I will buy the house for $45k assign it for $10k. Making the price to another investor $55k plus all closing costs of about $2k. House needs about $40k in repairs. The ARV is $145k

Thanks

Keith

If I was buying for myself I could see the benefit of adding all the green stuff. But for a flip???? It will cost me twice as much to do the repairs, which will eat up my profit. As I see it the end buyer is the one to benefit from all those costly upgrades.

Just my opinion.

Damn... if you can get all that done for the price you say. I'll buy the house, drive to tennessee buy all the materials and bring back some good ol boys to do the labor. LOL

Its going to cost me $8k for the kitchen alone. Better yet I'll buy it and wholesale it to you...hehehe

anyone?

Hard money lenders are a good source though expensive and they won't fund 100% of the deal. Private money lenders are a good resource if you can find them. The intrest is what ever you decide to pay them. 10-12% is more than fair in todays market. But you have to follow SEC guidlines or you can get in real trouble. Start with friends and family, then your doctor, dentist, lawyer, etc.

Here is a website to get you started.

[AD LINK REMOVED]

I don't own or have anything to do with this site, but thy seem to have alot of good info for free through their email campaign. Haven't signed up for the course so I can't vouch for it.

Good Luck

Most houses her in PA have cracks like those. They are caused by settling soil. Nothing to worry about as long as they are not 1/4 inch or wider. The ones in your photos don't appear to be even close to that wide. A little rubberized concrete crack caulk and some paint and it will look good as new.

Don't leave them unrepaired though depending on your location water may get in and freeze and or plants may root themselves in the cracks and make them worse over time.

I have come across properties just like that. If I were you I would do everything I could to find the owner of the abandoned unit and buy it, then you have control of the entire set of row houses.

I would start with tax records, to find out who is listed as owner. It may be the city for unpaid taxes. If it is a person do a skip trace on them. Good Luck