Investors totally unrealistic and crazy low ball offers
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.