Updated almost 11 years ago on . Most recent reply
Wholesaling
I have a motivated seller who didn't accept my offer, but called couple days later saying that the bank was going to lower his mortgage. What should I do? Is this a deal?
Mortgage 220k
ARV 185k
$40 repairs
Most Popular Reply
My comments are based upon strong conservatism. Please keep that in mind.
The answer depends upon your exit strategy.
If this is buy and hold, you will have to perform an income analysis, based upon rentals. Be very conservative.
If this is a buy and sell (I dislike the word "FLIP"), I suggest anything over $90,000 is too much.
In my business, I try to BUY in such a way as to SELL for 50% or less, and make a profit. So, if I were to buy this, I would probably pay less than $90,000, so I could sell for $90,000.
But people who know me know I only do little deals. For $90,000, I can probably do three to four deals, with less exposure, higher profit.
This isn't about me, though. It's about you. You need to define your exit strategy, and let that guide you.