All Forum Posts by: Stephen Bennett

Im curious, does anyone know if you can use the verbiage, "offer not contingent upon financing" when using hard money in North Carolina?

@Kyle Parks That breakdown helps a lot! So then basically you would want to adjust your max asking price to give the profit you are looking for, say 20%. Thank you very much for your time, this is going to help tremendously!

@Charles Yant Very good, I will make sure to submit an offer, no matter how I feel about it because the seller may feel differently! Thanks!

@Suraj Gupta That is true, if the numbers make sense, then the seller would have to at least consider. The CMA that was given to me by a local agent was $155,000. She sent me the actual report, so I did verify that. I see that you are a real estate agent in North Carolina. I'd like to ask you a question. In your opinion, do the percentages I am using for closing costs seem to be correct for the North Carolina standard? For example, I'm using 6% for the closing of the purchase and 9% for the closing of the sale. Is that correct?

@Caroline Gerardo it turned out to be a nasty sink hole. Definitely a money pit. Professionals that knew about sink holes would have to repair, and the hole could still return thereafter. Thanks for your input!

@Matthew Paul this is a formula, and the profit was based off that formula. Not sure how you run numbers but I always figure my numbers based on ARV with 20% profit. For example, if I had an ARV of $250,000 then my profit would be $50,000. I'm a carpenter by trade, and did take the lumber costs into consideration. Also this is a standard flip, paint, flooring, cabinets, counters etc. I will be doing all of the work and can get this job done in 3 months, but planning for 6. I don't have an issue with this aspect of the analysis. However, my numbers are so far off I was afraid I was doing my percentages wrong with real estate fees etc.. I just moved from Florida to North Carolina and the numbers are different here so just making sure. Thanks for the input though!

@Michael Plante well that makes me feel a little better. The market has made things so tight, it's hard to find a seller that isn't asking a ridiculous asking price. Would you send in an offer and low ball them or just move on?

Sorry I should have specified. It's a flip property and I'm trying to mirror the comps kitchens.

So my wife and I are having issues with running numbers on properties. We are located in the state of North Carolina. We currently have a property with an ARV of $150,000 - $160,000 and are trying to come up with a max buy price. The home is currently listed at $99,900. We figure in 6% for the closing of the purchase, repairs are $20,200, holding costs at $300 per month for 6 months is $1,800, down payment for the hard money is 10% which is $9,900 with 100% of the rehab included, LTV is 70%-75%, 12% interest-only payments, 2% points, along with closing costs 9% on the sale, our profit is $22,500. Our max purchase price isn't making sense, and we feel we are doing something wrong. When I use the quick estimations from books I have read, we are extremely lower, like $20,000 lower. Our max purchase price is around $58,000 which is very far away from the list price. What are we doing wrong?

Here is a photo of a house I am going to be remodeling. I want to move the fridge to one of the adjacent walls, and I want to position the stove with a microwave over top of it. I really don't want to frame in a window because then I would have to put siding in place of the window and I will never match the color, so I would then need to paint the exterior. I think the pantry is expendable if I was able to install a small island for cupboard space. Does anyone have some suggestions on other layouts that may work better? Thank you!