Purchase price: $58,400 Cash invested: $58,400 Sale price: $70,500 Buy and Hold Project - Valencia, Spain57sqm, 3 beds, 1 bath, liftList Price: €64,000Sold Price: €53,000Offer Date: January 24, 2018Closing Date: March 14, 2018Condition: Vacant, full renovation needed Agent Commission: €3210 (6%)9% ITP Tax: €4770Lawyer Fees: €1000Notaria/Gestoria: €874Total Closings Costs: €9854Rehab (Reforma)Labor: €21,145Carpentry (kitchen, cabinets, side tables): €1900Windows (6 windows, 2 doors): €1771Materials: €12,775TOTAL PURCHASE + REFORM = €96,774 What made you interested in investing in this type of deal?

Big-name companies are pouring hundreds of millions of dollars into the area!

People buying lists guess what hundreds to thousands of others are also usually buying the same list so they tend to be worthless lots of times.If you want to be a wholesaler you might do better to be a real estate agent.

Things take much longer to develop than people think.Typically when you see big apartment buildings go up it is a 3 to 5 year process.It might only be a few years from the time the public hears about it but before that years of legwork went into getting to that point.I couldn't say if right now was the right time to build.Everything is project specific.If the city will let you use a class C finish rather than a class A the numbers will save you money.Just to give a for instance some cities will demand a traffic light be put in for some projects.The traffic light parts itself are not that expensive but with the fiber optic hookup and underground cabling you are talking hundreds of thousands just for that one item.Typically on larger projects it's a fight for the developer to make profit.They propose a certain density and drawing.The county or city then wants to reduce the density and add in all these road improvements and lights at the cost of the developer.All the costs have to work for both parties to get a deal done.I have seen some projects take 2 years to get approved from submitting after going back and forth with revisions and tabling until the next meeting.So half the battle is the cost and financing available when you break ground and the other is the political junk.How much total land would you be getting??

That being the case, you need to become an expert on analizing the costs yourself.Here is what I would suggest: Spend many hours at Home Depot and/or Lowes to familiarize yourself with costs on typical rehab items such as flooring (carpet, tile, travertine, etc), toilets, bathroom vanities, sliding mirror doors, interior doors, baseboards, door casings, light fixtures (celing fans, etc) paint costs + paint supplies (tarps, brishes, rollers, etc), windows, sliding glass doors, kitchen cabinets and countertops, sod, trees, plants, bushes, ground cover, etc.

I make a living on it to this day, and have done hundreds of wholesale deals over the past 15 years.

You could also only put down a few hundred dollars so that in the case of a disagreement you just walk away.

But we're talking many (tens if not hundreds) of calls a day.

If you can buy 1 or 2 properties at 70 cents on the dollar (and these deals are out there in abundance), why would you want to use the same ratios when buying a couple of hundred?

I had been intrigued by real estate as an asset class when working in Moscow in the early 90s, knowing many ex-pats who were making large fortunes in the arbitrage of being able to buy buildings for thousands of dollars, spend tens of thousands of dollars rehabbing them and then sell them for hundreds of thousands and millions to other ex-pats and the consulting firms they were working for.