All Forum Posts by: Astrid Van Boom

Hi Gene

Do you also deal with remote real estate investors? 

Thanks

Astrid

Thanks for the insight guys. Just what I was looking for.

I have been applying the rule of thumbs(70% of ARV) for analyzing deals, but up to now, 8 months later, offers have been rejected as it is toooo low. ARV in most cases is much more than the Asking price, but when deducting rehab cost, (no closing or holding cost) and my Assignment fee, the offer price is far below Asking price.

Should there be a reasonable big margin between ARV and Asking price to be a considered a good deal? Or is rehab costs the determining factor. Maximum Assignment fee I am looking at is $5,000 per deal with Initial offer, but will go down to $3,000 for MAO.

I need help big time please

Hi 

@Account Closed Chelsea, I really appreciate your lay out of how wholesaling REO's work. I am a newbie and don't have funds to do REO assignments, but get sent these properties by my REA. Any advice will be appreciated.

Thanks

Astrid

Hello Wayne and Michael, thanks for your advise. I have been reading, following and watching podcasts for 7 months Michael, but somehow not making that first deal yet.  But yes, education is key, that is why I am still hanging in there, and of cause the money I invest into real estate investment/courses.  Regarding law or more the tax system. NZ and USA has a double tax agreement whereby you don't get taxed twice. I will pay tax in America, which I have to declare in NZ.

Thanks

My REA sent me a list of properties listed with Homepath.com, which is  still very much "alive" although comments I picked up from other forums on this topic said otherwise. In researching  more what they are about, found lots of negative comments regarding their way of dealing with home buyers.  Don't know if this applies to investors as well.  In an article I read it said, that they only do repairs to be able to resell the property, but that there is no warranty or guarantee that the repairs are up to standard. Even if there obvious things to be repaired, like mold for example. Buyers lost their money as it was not refundable, "they are sharks who have no business ethics". Lots of fine print, 13 page addendum you have to submit with your offer.

The properties I got sent, vary in price range, area and repairs vary as well, as as what I can see on the pics. But as said earlier, there is no guarantee that there might be major faults. ARV looks pretty good for some. I am focusing on wholesaling and want to know whether it is worth exploring this further with no money down.

Hi

I am from Wellington, NZ, who has decided that at 50 it is the best time to pursue a new career!!! My husband and I have always thought of investing in property in New Zealand, but due to the ever increasing prices of houses, decided not to pursue it any further.

We learned about the possibility of investing in America, in a market where it is possible to be successful and financially independent, and I decided to go for it!!!

I have no previous experience in real estate, but has more that 30 years experience in delivering excellent customer service.  

Astrid

Thanks guys. 

My REA said I have to add a 3% commission to my offer price as the property wasn't listed on the MLS. I don't mind paying her 3% commission, just want to know if that is standard practice.

Amazing transformation Tarl!!!!!! 

I am reaching out to you, as per your comment. I am a remote wholesaler dealing with a committed REA, sticking with me for the last 7 months, But NO deals. Been putting in offers: using comps, ARV, x70%, estimated repairs($10/sqft minor, $20/sqft bad/really bad or $30/sqft for awful. Based on pics I get/see. This then equals MAO to end buyer? Further calculation will be, minus my fee/profit to get MAO to the seller. I have been working on max of $5,000 per deal, but now came down to $3,000, to see if I will have better luck. Sellers want close to Asking price, even if ARV is less. Know this is then a no go if they don't want to negotiate. But what if ARV is more than the Asking price, but rehab price might still be lower than actual Asking price?

When can I actual offer the Asking price? Home I am looking at which is can be a buy or rent, is going for $29,000. Exterior is good with clean yard. Interior needs work. Average price is $55,000 ARV is $55,000. Good area. Can I work numbers backwards? Buy for $29,000 + rehab $10,000(rehab of $10.sqft) + $3,000(fee) = $42,000 to sell to end buyer. He/She makes $13,000 profit?

 I am getting confused by holding and closing cost that some say I will have, in spite of me doing wholesaling/Assignment of Contract? Thought this is calculated in to all cost end buyer will have/pay. 30% of the 70% will be their profit margin.

I am just flipping, so an example like below wouldn't apply to me? I still have to deduct my fee/profit to get MAO for seller?

ARV = $200,000

Repair costs = $40,000

70% rule = $140,000

$140,000 – $40,000 = $100,000

Maximum purchase price = $100,000 - for me(rehaber) to the seller to rehab then flip/rent myself?

Any help will be appreciated.

Hi Jason

I am dealing with REA to help me. I am remote wholesaler. Haven't done any deals yet, but she still sends me deals and I appreciate her commitment to help me as newbie and remote wholesaler. Hope to answer a YES to your question soon.