Updated over 9 years ago on . Most recent reply
What Are Buyers Looking For In A Deal?
Hello, fellow REI's of Nashville. I am a new investor looking to start out in wholesaling and I'm just looking for some direction. I want to know what are some of you local buyers looking for in a potential deal? Specifically what you are looking for as far as specific area, acquisition price, rehab budget, desired rate of return, tolerance for risk, etc? Any info you can provide on this matter will be helpful. Thanks!
Most Popular Reply
On new construction deals you want to buy the lot or existing home for no more than 20% of the sales price of the new construction.
So if both structures sell for a total of $700k you will want the lot for $140k(700k*20%)
Flips-70% of ARV less repairs, holding costs and closing costs. If your ARV is $300k, and costs are 50k, then you would want the property for $160k. [(300*0.7)-50]
These are just general guidelines. Some buyers might want something else, but this is at least a good starting point.
- Luka Milicevic
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- 270-226-9000
