Buying & Selling Real Estate Discussion

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Joseph S.
  • Abington, MA
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17
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Investors totally unrealistic and crazy low ball offers

Joseph S.
  • Abington, MA
Posted Jan 18 2018, 17:39

I put a Condominium Triplex for sale to investors only. I did all the needed analysis for a fix and flip type investors. My price = After Repair value (based on detailed comps analysis)- Detailed & accurate Renovations Cost-Hard Money Loan Interest (9 months at 10% interest rate include 90% of list price+ Renovation Cost)- Loan Cost (5 points)- Realtors Commissions-Taxes-Maintenance-Other costs. Their profit based on ARV list price is 15% to 20%. Yet every investor who showed up wants to reduce my price by $ 80,000 to $ 100,000. What the hell? Are these people for real? How do they even get a deal with such crazy low offers? I think their hit ratio is 1/50 if they are very lucky, the idiots I met probably have a hit ratio of 1/100.

End rant.

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