Let's see if I have the hang of these two deals.
I am working on the following deals with a buy and hold exit strat of 1-2 years:
Deal One:
REO (On Market Dec 07-offer fell through-Back on Market 12 Jan 08)
2 Bed 1 bath w/ garage
.17 Acres
Listed $189,900
Comps /FMV around $190K-200K
1 Year Hold Numbers
$113,500 Purchase price ($190,000 * 65% for declining markets)
$2270 (2% * $113,500 closing costs)
$10,000 repairs
$6720 Interest (6%)
$468 Insurance ($39 mo w/ Earthquake cover *12)
$1250 Taxes (113,500* .011)
$1440 (Principal * 12)
$15,200 Selling Costs 8% * ARV (6% for agents, 2% for other costs)
$37,340 (Closing+Repairs+Holding+Interest+Insurance+Taxes+Selling)
$150,840 Total Outlay (Purchase + Holding)
$39,160 Profit (ARV-Total outlay)
2 Year Hold Numbers
$113,500 Purchase price ($190,000 * 65% for declining markets - repairs)
$2270 (2% * $113,500 closing costs)
$10,000 repairs
$13,440 Interest (6%)
$936 Insurance ($39 mo w/ Earthquake cover *24)
$2500 Taxes (113,500 * .011 for 1 year *2)
$2880 (Principal * 24)
$15,200 Selling Costs 8% * ARV (6% for agents, 2% for other costs)
$47,226 (Closing + Repairs + Holding + Interest + Insurance + Taxes + Selling)
$160,726 Total Outlay (Purchase + Holding)
$29,274 Profit (ARV-Total outlay)
I am planning to offer $113,500 working up to 120,000
Does this look right?
Unfortunately my agent said she is 'deciding whether or not to write the deal'
Does that mean she's worried about her rep/confident they'll reject?
Should I find another agent to write it?
Deal Two:
REO (on Market 15 Jan 08)
3 Bed 2 bath w/ garage
.145 Acres
Listed $199,900
Comps around $250,000
[b]
1 Year Hold Numbers[/b]
$152,500 Purchase price ($250,000 * 65% for declining markets - repairs)
$3050 (2% * $113,500 closing costs)
$10,000 repairs
$9120 Interest (6%)
$468 Insurance ($39 mo w/ Earthquake cover *12)
$1678 Taxes (152,500 * .011)
$1800 (Principal * 12)
$20,000 Selling Costs 8% * ARV (6% for agents, 2% for other costs)
$46, 116 (Closing+Repairs+Holding+Interest+Insurance+Taxes+Selling)
$198,616 Total Outlay (Purchase + Holding)
$51,384 Profit (ARV-Total outlay)
2 Year Hold Numbers
$152,500 Purchase price ($250,000 * 65% for declining markets - repairs)
$3050 (2% * $113,500 closing costs)
$10,000 repairs
$18,240 Interest (6%)
$936 Insurance ($39 mo w/ Earthquake cover *12)
$3356 Taxes (152,500 * .011)
$3600 (Principal * 12)
$20,000 Selling Costs 8% * ARV (6% for agents, 2% for other costs)
$59,182 (Closing+Repairs+Holding+Interest+Insurance+Taxes+Selling)
$211,682 Outlay (Purchase + Holding)
$38,318 Profit (ARV-Total outlay)
I plan on offering $152,500 working up to $162,500
Any ideas/thoughts? Do I have the hang of it? Look ok?
Thanks for lookin'!
Gary
EDIT: A Million typos/formatting issues :goofy: