All Forum Posts by: Najeriq Mentor

@Justin Williams one deal is still underway. The deal that I had to pull the plug on:

Unique property with 2 houses on 1 Lot currently rented producing $925/month

Comp Sales- $100,000-$120,000

ARV- $100,000

Repairs- Water damage and leaks in smaller home estimated costs $10,000

Purchase price under contract $40,000

Assignment fee- $9,000

Sales Price $49,000 

21 day contract ended yesterday

@Justin Williams Thanks, the reason I ask is because my last 2 deals were evaluated strictly by the 70% ARV- (Repairs+Assignment fee) and I put them in front of our areas top buyers. And didn't get the outcome I was looking for

@Gerald Harris your great! This info is very helpful. The simplicity is pretty much a virtual slap in the back of the head

Thanks!

70% of ARV - (Repairs + Assignment fee)

This I understand, however those of you in Columbia, Sc or surrounding areas would you say our market calls for a lower percentage of ARV? My partner has MLS access and I have FreedomSoft so we have no problem pulling accurate numbers. I'm considering evaluating houses at 60% of ARV to make deals more appealing and make buyers act quicker. However I do not want to leave piles of money on the table. Any suggestions?

That's awesome Michele. That first deal is the Icebreaker of Wholesaling. I look forward to hearing more of your success stories. 

I'm not in that area, but a friend of mine who's also a Wholesaler in NJ shares his experiences with me and this is a topic that comes up frequently. Before you go looking for motivated sellers make sure you have a few Cash Buyers. Bandit Signs in highly trafficked areas are good for targeting motivated sellers as well as cash buyers. And direct mail works everywhere and is probably the most effective way to reach targeted leads and receive a good response rate. My friend uses bandit signs in the area he has targeted. That way he's targeting sellers, in that area. Cash Buyers, in that area. And contracting deals, in that area. Hope that was helpful.

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I stay away from homes in rural areas because the value is hard to determine. However I run into motivated sellers in these rural areas quite frequently. One property in particular, 2/1 930 sqft, has a $33,600 tax assessment. No comparable sales within 12 months time and 1 mile radius. According to the MLS. Zillow has it appraised at $80,090. And I can get it under contract for less than $15,000. From my experience, if a property has no comps it is anti-investor. But I ask, is this a deal?

Additional info: 3/1 2100sqft built in 1957