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Updated over 7 years ago on . Most recent reply
Need help analyzing first deal!
Holy crap! I just got off the phone with the first person I've ever called about a deal, and I still have butterflies. I am so nervous.
Anyhow, I'd really like some thoughts on this deal. This house is in really rough shape (started out as a rehab that lost funding), so it still needs a lot of work. By the way, this is a wholesale deal
- Estimated ARV: 130,000 (there's not garage on this one), houses in the local area with ~100 more square feet have been selling for between 150k-160k. Her ARV was 135k.
- Estimated Repairs: 50k, I have no idea, this is where I am weakest, I am terrible at estimating repair costs (I need to buy the J. Scott book)
- My fee: 5k
Formula: (130,000 * 70%) - 50,000 - 5,000 = 36,000 MAX
So she's asking $45k, but I called her and she said she had an offer for $35k.
My next steps: I told her that I would meet with her and a contractor on Thursday to really check the repair costs and make sure they're accurate. Also, I want to get in contact with a realtor and run better comps for me, especially since this house doesn't have a garage.
I really wish I had more money and experience to flip this house, because this is a pretty sweet deal I think, and I'm excited for it. I'm trying to remember not to get too emotionally invested in anything.
Can anyone PLEASE let me know if I am missing anything.
I couldn't upload more pics, because they all came upside down.
Most Popular Reply

@Account Closed Congrats. I am assuming you are acting as the wholesaler here and are trying to determine what you can offer her and still be able to assign it. At least that is what I am getting. Regarding the repair costs I can probably help you with that. Can I please have some details on the house? How many bedrooms, bathrooms, and sqft. Any exterior landscaping that needs done? Roof or foundation issues (those are your most expensive items)? I recommend when you go to see the property that you take a piece of paper with you and create a very detailed scope of work. My first scope of work was detailed down to the number of outlets and switches to be replaced per room. Once you have a scope of work feel free to send it to me and I can look it over and give you rough numbers. I can tell you that 50k in repairs can get you a TON of work for a 3/2 1500 sqft house with the right contractor.