I'm looking at this property in greenville sc and the owner says he'd like to get $40,000 for it. It's probably worth 50-$55,000 but I bet it needs 20-$25,000 worth of work. He also owns the lot next door which has nothing on it and that is included in the deal. This would be my first deal so if anybody has any advice I'm all ears. I appreciate everybody here and their help
If it needs that amount of work and he won't take any less than $40,000 than you ultimately don't have a deal. Best thing you could do really is talk to the seller and explain to them the repairs it would need and try to get them to come off the price. Just my personal opinion. Are you looking at it as a rental or fix and flip?
thx for the response. I'm looking to wholesale it. What kind of numbers would make this deal right in your opinion? And that number $40,000 is what he says he wants but I have not tried to negotiate at all yet I've just looked at the property. I bet he'd take less but not absolutely sure. How foes the lot next door come into play here, should I not even look at that as part of the deal as far as numbers are concerned? Thx for your feedback I really appreciate it.
I agree with @Junior Salters The numbers don't look like they work as they stand.
@Kevin Bain To be sure you have a good deal, I suggest the following formula: .70 x $50,000 (ARV) - $25,000 (repairs) = $10,000 (Maximum Allowable Offer)
Good luck! Congrats on taking the first steps! Let us know how it goes and other properties you come across.
Thx a lot for your feedback and advice Recia. It's appreciated.
Not a deal obviously, but that is why BP is great. You can run deals by people and it can really keep you from making a serious mistake. Kudos to you for having the guts to ask,
Yea, Michael no doubt. Thx for that. I didn't think it was a deal but the fact that he owns the empty lot next door and he's selling that included was kinda throwing me off a little. But heck yea this forum rocks and talking with people with experience keeps me balanced and gives me clarity. Thx Michael.
I would like to know where this house is.
Hey, Jason. My buddy just went to your talk this past weekend he'd trip out if I told him you responded to my post. I will give you a call and thx.
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