How do you calculate a wholesale offer with fire damage?
What is the best way to calculate an offer on a home that has no access/extreme fire & structural damages? Thanks in advance for the tips!!
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
- 5,506
- Votes |
- 9,861
- Posts
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
You get a quote from a contractor on what it would take to rehab the place and subtract that from your %70 rule
Or you calculate tear-down costs and new construction.
Thank you @Eliott Elias and @Nathan Gesner. Great advice, I will be sure to try both methods.
I am not sure what you mean by a "wholesale" offer. The 70% rule = ARV (after-repair value) x 70% - Repair Cost. If you intend to wholesale it to an investor who uses this 70% rule, you would want to sell it even lower to account for the profit you want to make (i.e., $10K). The ARV is determined from sales comps. If you need help with sales comps, send a DM.