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3 June 2018 | 43 replies
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16 January 2022 | 150 replies
particularly around utilizing realtors and including a reduction from ARV in order to get a quick sale.
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17 October 2020 | 54 replies
The way you get a bank to pay for your closing cost is in a reduction of purchase price.
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31 March 2021 | 40 replies
For even more accuracy, we choose to only use comps that are 1/3 mile away or less, with sales dates within the last six months.Sometimes, even the street can make a difference in the value of a property.If the only comps you have are on very nice streets, but the house you’re considering is on a very “distressed” street, then you have to reduce the ARV.How much is an appropriate reduction is a judgment call on your part.You’ll want to base that call on how much of a discount will be necessary to entice the final owner/occupant to buy this property over one they can get on the “better” street.If the comparable sale that you are using is too different from the subject property, then it is of little value.If you use it in your sales marketing, you’ll lose credibility with your Investor Buyers.An example of a poor comparable is when your subject property is an old cottage fixer-upper, and you compare it to the sale of a brand new in-fill (an in-fill is a new house built on a vacant lot in an otherwise established neighborhood).Rehab dollars vary according to level and detail of the job – everyone has a different formula.As a wholesaler, we suggest a middle-of-the-road approach for estimating enough rehab dollars to get the subject property to look like the comps.You’ll need to spend more on rehab as the ARV increases.Logically,buyers like more ‘pretty-ness’, higher-end fixtures, cabinets, etc. when they’re paying $200,000 vs. when they’re only paying $100,000 for a house.Buy/Sell/Hold costs are all of the costs associated with:üThe purchase (loan origination fees, title insurance, attorney fees, survey, appraisals, etc);üThe sale (real estate agent commissions, marketing and advertising, closing costs paid by the Seller); and üHolding the property (mortgage interest, utilities, taxes, insurance, etc.).
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31 January 2022 | 248 replies
I do think there will be a reduction in prices.
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4 May 2018 | 100 replies
I think more in terms of...Cash flow per property than per doorTotal profit (IRR - cash flow, principal reduction, appreciation) rather than just one component of it (cash flow)Adding value...forced appreciation (which can be the most profitable component)
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14 April 2015 | 14 replies
I'm not surprised that a buyers agent would object to a reduction of commission.
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25 August 2018 | 99 replies
Once you know how to make money a 50% reduction in net worth isn't that scary.
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3 January 2019 | 226 replies
Property gets put under contract and then with due diligence and inspections you slowly start chipping away with price reductions.
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25 May 2019 | 2 replies
A price reduction has already taken place around 5,000.00.