I have a question when trying to decide how much to offer sellers who want to sell their homes how do i come up with a price to offer where I can make a profit with the end buyer. I understand for the most part how the process goes. I know you pull comps if a home comps are 100000 you discount 30% or 70000 minus repairs say 15,000 then 55,000 is the most you offer. However I have found here in st louis that formula doesn't always work. I was trying to figure out what to offer a seller her house comps were 50,000 some higher some lower if I use the same formula 20000 should have been tops but when i went to the end buyers most didn't wanna pay more than 10,000 i'm confused I know it something simple and advice.
Originally posted by @David Stanfield :
What's you estimate of repairs on this $50K house?
Are you randomly adding 15k for repairs each time like it seems in your above examples? Usually if you can get a house at 70% of the value -repairs -your assignment fee you should be able to find some investor that is interested. Just make sure your comps are on point as well as your repair estimates.
I was just using 15,000 as an example
I don't know what neighborhood you're working in but I work it this way.
$50,000 X 65%= $32,500- $15,000 (repairs)= $17,500- $5,000 (my wholesale fee) = $12,5000.
If you are in Florissant and you stray to far away from there you are in bad neighborhoods.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!