Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

Account Closed
  • Fort Worth, TX
7
Votes |
25
Posts

Need help analyzing first deal!

Account Closed
  • Fort Worth, TX
Posted

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

User Stats

109
Posts
92
Votes
Ryan Detig
  • Nederland, TX
92
Votes |
109
Posts
Ryan Detig
  • Nederland, TX
Replied

@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.  

Loading replies...