Making an offer on a property that doesn't need rehab.

[Doug Eric Gueirn]

How do I calculate an offer on a piece of property that does not need much renovation or repairs? Will investors take properties that may not have a massive amount of profit? Can I realistically find a buyer that is okay with a small profit if it is all cash? 

[Andrew Bosco]

There are numerous kind of investors. People that prefer appreciation, added-value, rental growth etc. You are looking more at turn-key properties. Decide what metric you're trying to assess (in this case it sounds like appreciation over time) and line it up with your buyers list. Some buyers maybe in your criteria - not all though. Do your own due diligence on buyers and their criteria.  

[Eliott Elias]

It sounds like you are wholesaling this property, follow the 65% rule on the purchase and offer the property at 70% to your end buyers. 

[Spencer Cuvelier]

As far as addressing your first question, you need to determine the fair market value of the property by researching recent sale comps of similar properties in the area. Subtract any necessary repairs or renovations from the market value to arrive at the ARV - this step may not be necessary if renovation/repairs aren't needed at all. Factor in any holding costs you might incur while the property is being renovated or sold (mortgage pmts, property taxes, insurance, etc.).

As for whether investors will take little cash flow, this depends on investors specific goals and investment strategy. Some investors may be willing to take on smaller profit margins if they're able to purchase them at a lower price and hold for a long term. If you are determined to sell a property with low profit margins, you may need to adjust your expectations and be willing to accept a lower offer.

Ultimately, the key will be doing your own due diligence. 

[Doug Eric Gueirn]

Quote from @Andrew Bosco:

There are numerous kind of investors. People that prefer appreciation, added-value, rental growth etc. You are looking more at turn-key properties. Decide what metric you're trying to assess (in this case it sounds like appreciation over time) and line it up with your buyers list. Some buyers maybe in your criteria - not all though. Do your own due diligence on buyers and their criteria.  

I just want to make sure that I am able to market the agreement to qualified buyers and give the seller a fair price. I understand that time and experience will be the teacher in all this but as I am just starting out, I want to make sure that I am not shooting myself in the foot. 

[Michael Diossa]

As mentioned above,by based on what I'm hearing, it seems that you intend to sell this property in bulk. To ensure profitability, it's recommended that you stick to the 65% rule when acquiring the property and then price it at 70% when presenting it to potential buyers.

[Bob Stevens]

Quote from @Doug Eric Gueirn:

How do I calculate an offer on a piece of property that does not need much renovation or repairs? Will investors take properties that may not have a massive amount of profit? Can I realistically find a buyer that is okay with a small profit if it is all cash? 

 Its ALL about the numbers, nobody is going to invest, 250k to make 5 - 10k, or 500k to make 20k,,, PLEASE connect with those doing deals, learn then apply what you learn

Good luck 

[Eliott Elias]

Use the same formula you would if it needed rehab.

[Doug Eric Gueirn]

Quote from @Bob Stevens:

Quote from @Doug Eric Gueirn:

How do I calculate an offer on a piece of property that does not need much renovation or repairs? Will investors take properties that may not have a massive amount of profit? Can I realistically find a buyer that is okay with a small profit if it is all cash? 

 Its ALL about the numbers, nobody is going to invest, 250k to make 5 - 10k, or 500k to make 20k,,, PLEASE connect with those doing deals, learn then apply what you learn

Good luck 

 So would you say then that $50,000 is most likely the minimum of what a good deal to an investor would be for a property of $300k-$500K?

[Doug Eric Gueirn]

Quote from @Michael Diossa:

As mentioned above,by based on what I'm hearing, it seems that you intend to sell this property in bulk. To ensure profitability, it's recommended that you stick to the 65% rule when acquiring the property and then price it at 70% when presenting it to potential buyers.

 Okay, now we are getting somewhere.

[Ran Iarovich]

find a real estate agent who can help you underwrite the current comps in the area using the MLS. Also, try to join an investor mastermind in that area (for free) so that you can hear from the experts who've been in the game for longer.