All Forum Posts by: Account Closed

John, it seems like you have an issue with my EMD. What would you have put down?

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hi Guys ~

I have a property under contract, that will be my first wholesale deal, barring any disasters.

The house is an extreme hoarder house. The heirs inherited the property. One of the siblings had lived in it for years and filled it up to knee level in junk. He is no longer living there and it is now vacant. According to the owner, the city threatened to condemn it, but they have not moved to do so as of yet. It is a 2 Bedroom 1 Bath, with 1450 Square Feet of Living Area. Property sits on 0.52 Acre.

I got the property under contract at what I believe is a good price. It's just under the tax assessed Land Value.

I am meeting with potential Buyers this week. I want to make sure I market the property at a good price, so both my Buyer and I will walk away with a great deal.

Here are the numbers so far:

ARV = 120,000

This is based on comps for 3 Br properties sold within past year, within 0.5 miles. The home is in the city's "Historic District". I would assume buyer would make it into 3 and at least 1.5 bath, given the size of the property. If it was kept as a two bedroom ARV would only be about 80,000.

Purchase Price: $11,500 . Contract signed with Seller. $10 Due Diligence, 30 day period. $10 EMD.

Rehab Estimate: $50,000 . (This is a very rough estimate for a full rehab. For a 1450 square foot house, I think a lot can be done for 50K.) 

Asking Price: 34,000 (ARV 120,000 x .70 = 84,000 - Rehab 50,000 = 34,000 )

Desired Wholesale Fee/Profit: 22,500.   (Selling Price 34000 - Purchase Price $11,500 = $22,500 )

Is this a good asking price?

Hi Guys ~ 

I have a property under contract, that will be my first wholesale deal, barring any disasters. 

The house is an extreme hoarder house. The heirs inherited the property. One of the siblings had lived in it for years and filled it up to knee level in junk. He is no longer living there and it is now vacant. According to the owner, the city threatened to condemn it, but they have not moved to do so as of yet. It is a 2 Bedroom 1 Bath, with 1450 Square Feet of Living Area. Property sits on 0.52 Acre. 

I got the property under contract at what I believe is a good price. It's just under the tax assessed Land Value. 

I am meeting with potential Buyers this week. I want to make sure I market the property at a good price, so both my Buyer and I will walk away with a great deal. 

Here are the numbers so far:

ARV = 120,000

This is based on comps for 3 Br properties sold within past year, within 0.5 miles. The home is in the city's "Historic District". I would assume buyer would make it into 3 and at least 1.5 bath, given the size of the property. If it was kept as a two bedroom ARV would only be about 80,000.

Purchase Price: $11,500 . Contract signed with Seller. $10 Due Diligence, 30 day period. $10 EMD.

Rehab Estimate: $50,000 . (This is a very rough estimate for a full rehab. For a 1450 square foot house, I think a lot can be done for 50K.)

Asking Price: 34,000 (ARV 120,000 x .70 = 84,000 - Rehab 50,000 = 34,000 )

Desired Wholesale Fee/Profit: 22,500. (Selling Price 34000 - Purchase Price $11,500 = $22,500 )

Is this a good asking price? Buyer should stand to profit at least 25,000 for the Flip. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Jaysen, 

Thanks for your reply and feedback. 

Yes, read the chart wrong. Investment property 1 Unit only for 85%. 

Hello BP, 

I am currently reading David Greene's BRRRR book and had a couple of questions.

In Chapter 9 - "The Value in Financing", there is a section discussing Conventional financing. He writes that for an investment property, the minimum down payment is typically at least 20% down. However, in talking to a lender recently, I was given this table: 

According to this, an investment property, 1-4 units can be acquired for 15% Down. 

Am I missing something?

I am looking to get started with BRRRR investing. I am able to qualify for a conventional loan. Should I not be bothering with looking at Hard Money options considering I am able to get more reasonable rates for the initial purchase ?

In terms of the refinance, the author advises getting pre-approved for the refinance before the purchase. If I am using a conventional loan for the finance, does the refinance typically occur with the same lender or a second lender?

Thanks so Much

I don't know if Jason will answer, but I would also like to know more (and am sure there are others) about the process regarding due diligence on auction properties. Thanks

Hi Kenneth, 

I am interested in investing through my IRA. Would you please send additional information on your projects?

Oren

[email protected]

Great show! Will there a transcript available?

@Wayne Brooks  , What other sources would you recommend, other than going to the county courthouse? 

If still available please send details to :

[email protected]