All Forum Posts by: Neil J.

Should always follow the 70% Rule to attract investors.

Asking Price = ARV (average of 3 or more comps) X .70 - Rehab Costs

If you're comparing to homes that have 2 baths, then you need to adjust your rehab costs to include what it would take to add a 2nd bath. If that's not possible, then you need to adjust your ARV down subtracting what a 2nd bath would be worth.

Note: Some people don't understand a true ARV number. Make sure your ARV is the average of 3 or more comps sold in the last 3 - 6 months. If that's not possible, then expand your numbers (6 - 12 months or 2 sold and 2 active comps or expand your area some).

Also, your rehab costs should not be your personal estimate. Should be a firm bid from a contractor or several contractors.  That will really help to attract an investor.

@Neil J., Oh, so you are not the listing Agent? Is there one? 

Given the comps you quoted in your second post, I don't blame the owner for not agreeing to accept less than $160k. 

Go find those Flippers...

@Neil J., what @Brent Coombs says is very true.  If your #s are solid and you can support them with evidence, then you should have no problem finding an investor to take on that flip.  If your #s are off it may not be worth it because $160 + 30 + 7 = 197k but doesnt factor in closing costs, holding costs, unexpected repair costs & your assignment fee.  Add all that in to analyze if the deal still makes sense.  It seems the #s are close and you may find someone.  I hope things work out for you.

@Neil J., in order to get investors interested in paying your listed $160k, you will need to come up with REAL justifiable numbers and comps, not just "assuming these numbers are correct", including realistic Rent-return figures. 

If it won't cash-flow, perhaps your next best bet is to attract local Flippers who specialize in rehabbing for the retail Owner-occupier market? All the best...

@Bill Gulley  not sure about each market but the last thing most people are going to do in hot and competitive markets is create competition for themselves.

I know when I used to buy court house steps and newbies would watch me buy 3 home in one hour they would walk up and start to ask me questions.. I would politely tell them they need to go learn it like I did... not going to create my own competition.

Same I think with successful wholesalers I would think the last thing on there agenda is to train all these newbies so they are direct competition..

now its one thing if your market is anywhere mid west or bigger rust belt city and its urban core props.. which there are thousands to be bought at anyone time

but again if your working a very hot market.. why would anyone do this seem like business suicide to me.

Add the 2nd bathroom,  1 bath in a 3 bedroom is not desirable.