hello everyone. My husband and I are new investors who have been wholesaling since Oct. of last yr. We have found a really good property in philly and are looking to partner with a seasoned rehabber/flipper to help us gain experience in this area.
The property is in the Germantown section of Philadelphia.
SELLER ASKING 37K
If you are interested in partnering for this deal, please contact me via email.
How did you determine the AVR and rehab costs? If you can justify your AVR and rehab costs, we can put the deal together for you.
The property was just brought to my attention yesterday. I had my realtor friend run comps for the area. 4 properties recently sold between 90-134k. I went with the conservative number.
As for the rehab costs, the person who brought the deal to me is also a wholesaler and knows the owner personally. The owner feels it my only needs about 10k in repairs, but in order to bring it to the same level of saleability of the recently sold properties, I determined that it may need more. However, I will be viewing the property today to confirm rehab costs.
Hi @Kira Santa
Does the $37k include the Wholesalers fee? Is this the price you are planning to offer? Are you paying all closing costs or will the seller need to pay their own?
At a total acquisition cost of around $40k and $20k-25k in repairs there doesn't seem like enough profit margin for multiple partners. These are assumptions, but the holding costs (taxes, insurance, utilities, financing if applicable) over the next few months combined with the selling cost (commissions, transfer tax, seller assist if you're selling to FHA buyer in a lot of cases) you're looking at about 85% of your ARV left.
$90k x .85 = $76,500 - less repairs $25k= $51,000 - less acquisition $40k= $11k net profit.
Consider the remaining profit you'll receive once this profit is split between partners and after taxes.
I'm working on a similar deal right now and thinking that I will rent it out since the profit margin is only around $10k. But if your strategy is to flip (and go in with partners) I would try to buy this place for $30k. I think that it can be a challenge to find deals where the numbers make since in Philly. Let me know how you make out on this. I'd be interested if you have more deals as well. Good luck!
it fell through anyway. the wholesaler who brought me the deal did not have it locked under contract and the owner decided that she wanted more for the property. she also apparently has it listed with a realtor already, and has it on the market for $49.5k.
so thank for the interest and valuable info guys, but the deal was dead before it started.
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