Does anyone know when the wholesale calculator week be up on the site?
I need help coming up with an offer. I have a house where the seller wants 27k and he estimates it's around 12k-15k in repairs. I just need help with what price to offer him. I want to make between 3k-5k of this deal. Most houses in the area have gone for 75k.
Any help will be appreciated.
It's easy to calculate on your own.
Offer to seller = ARV(0.7) - repair costs - what you want to make.
For example, you would calculate 75(0.7) - 15 - 5 = 32.5
Based on what you said though, I would not trust your data.
The variables (ARV, repair costs, and what you want to make) need to be as accurate and fair as possible, preferably with data to back it up. You should NOT calculate based on the seller's repair estimate, even if they are a contractor. You need to remove all bias.
You should visit the property yourself or send someone you trust to make an estimate, taking pictures and notes.
Not to say it can't be a deal. I would just obtain harder, more trustworthy numbers.
It sounds like you want to whaolesale this house with the profit you're looking to make. If you're looking to rehab and flip then there will be plenty of room to do that as well. With that said. Do you have experience rehabbing? Repair estimates are many times wrong and so are ARV estimates. Do your homework be sure of the factors that are concrete to your common sense. Here is a good rule and it's worked well for me and I live by it. 70% of ARV minus the repair costs. Fomula, ARV $100,000 Repairs $18,000 Maximum allowable offer is $52,000. with that my first offer would probably start around $44,000/ 46,000. With any deal I'm a liitle conservative with my ARV and a little leberal with my repair estimates. All business people are aware that you never take the first offer. Don't let deals go, by over analizing. There is a time to analize and a time to act.
Additionally and a bit more to the point.
Is it listed? If it is, it will be difficult to sell as a wholesale deal. People do check the history of property listings. BTW You should know rehab costs no matter the exit strategy.
Depending on the relyabilty of your numbers repair and ARV.
Sounds like it's a wholesale deal already. There is plenty of room for you to easily make 3K and cover closing costs leave more meat on the bone than these would-be wholesalers, I get emails form. How is your market? What swing is it in? Seller, Buyer or somewhere in the middle. Is your market saturated with deals like this. Is the crime level so high that if it's vacant for a week, all the copper is gone? If not, then take the deal in front of you.
With that said, Nothing wrong with offering less. If someone else knows about the deal it will likely disappear before you act.
First things first, "MAKE AN OFFER"!
I can't stress this enough. The key to every endevor no matter it's form is action.
Ps. $27,000 is near top of my range if my only exit is Wholesale.
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!