By looking at the recent sold property I can figure out how much they would go for.I want to offer 60-70% FMV value for these properties.

Keep in mind normal newbie mistakes are figuring too low on repairs, figuring repairs to be done too quickly, figuring too high of an ARV, and figuring too quick of a sale time.

The tip is already figured in I assure you.

take these #'s for exampleARV=200KPurchase price of home = 100KAfter figuring all of the soft, closing, title, taxes, insurance, points paid, Interest for 1 year and the draw interest...I calculated that you would have around 17K to work with in rehabing the home within the loan and you may have to come out of pocket to finish it.... and you haven't even paid the sell side closing costs and broker fee.Just my $.02

From here, you can figure a estimate on how much usable land there is.Im sure there are other small things, but this is what i like to see when scoping a new property.

A few times a year I'll call one or two of them, give them my numbers then sit and chuckle (to myself) as they hem and haw and try to figure out how to use their calculator and come up with a price.BTW, I've been a RE investor for close to 30 years, I've bought a few seconds (desperate sellers who needed the money to put up their noses) and a couple of firsts.

I'm glad you figured it out.

MikeOH,You have to understand that when dealing with clients they like to see formula's and figures laid out in front of them.

steps to follow, rental agreement forms, info on how to figure out what to charge as rent, after they lease for a year or 2, how much do they get a loan for--the original sale price or does any of their rent payment go towards the principal?

Now I also had a partner so my number was $8,000 per month or roughly $100,000 per year.Now I determined that I could find rentals at 40% return on investment, so I figured I needed to build about $250,000 in capital to invest at my 40% ROI to get my $4,000 per month.So my initial strategy was to figure out ways to turn what money I had (under $10,000) into $250,000 to reach my goals.Before you invest all of your 100K into rentals (which produce small increments of long term income) you might want to figure out how you will get more money to invest once your 100K is gone.