A profitable sell
Thanks for any responses ahead of time.... But say i find a motivated seller, and the house is worth $230k; how do i do my calculations, to determine, a price to present to the seller.. I would want the seller to be happy, as well as my end buyer.. ( I'm an investor who wholesales property) "newbee"
Comments (2)
Thanks a whole lot Ned.... That is some good info right there..!!!! I clearly understand the rehabbing rule; but the rental one, I'm not too sure on what your saying.. Is that the numbers I should go buy, when making an offer to the sellers.. But I'm truly getting there, and your one of the reasons why..!
Doryal P., almost 11 years ago
"I would want the seller to be happy," Never base your offer on what you think the seller will accept or be happy with. You have NO control over what the seller will accept but you have total control over what you offer. Make sure you offer works for you. "how do i do my calculations, to determine, a price to present to the seller.. " The are two main formulas one for rentals and one for rehabs. They are very crud rules of thumb, but they will get you started 1) For rental. A good deal for a landlord is if the rent is 2% (or more) of the total cost including repairs to get it ready to rent. Another way to look at it as the price is 50 times the monthly rent or less. 2) For a rehab the price should be After repair value (ARV) X70% (or less) - repairs= Max offer If you are going to wholesale the properties you need to buy for a little less so you can sell to your end buyer at these prices. There are plenty of threads here in the forum about these rules so do a search for more details. Good luck - Ned
Ned Carey, almost 11 years ago