All Forum Posts by: Blake Reynolds

Also, to clarify, I would be offering 50K for the property plus the 5K fee so the rehabber would be into it for 55K.

I just want to run the numbers to everyone and see if this is a good deal or not.

ARV: 110K-120K

Repairs: 25K-30K                                    115K x 70% = 80.5K - 27.5K =

Purchase price: 55K 53K - 5K fee = 48K MAO

Assignment fee: 5K

I know this isn't exactly the 70% rule but it is pretty close and that is the price the seller verbally agreed upon. Is this too small of a margin for someone willing to flip or is that normal when purchasing in a lower price range? Also would a buy and hold investor require less of a spread since equity and sales price wouldn't be as big of a factor to them?

Also note that I am inexperienced with estimating repairs which is my biggest concern currently. It could be more or it could be less than the 20-30k. I tried to estimate generously to give some fudge factor.

When wholesaling what is the order of actions after you get a purchase agreement signed with a seller? Assuming I will be assigning a contract.

Do you submit the PA to the title company first and then try to get a buyer to assign it to or should you assign the contract before submitting any paperwork to the title company?

I am in a similar situation and I would like to know an answer regarding this as well. Hopefully we get some good insight form others.!

thanks for the input @Darren Budahn. 

Another question: would I be able to sign a purchase agreement on the property to buy the home with a contract for deed? That way I could have the property locked up but still have time to do a thorough inspection before I sign the actual contract for deed. Or would I just be better off waiting to get the inspection and then just doing only the CFD?

Thanks @Angele Socho 

That's kind of what I was thinking about the tenant situation but I have never dealt with this before so I though I should ask and see what I can find out. 

Also I got comps from the MLS and I was able to put a value on the property for about double the amount the county assessed it for. Which is also the amount the owner is asking for it. I am just not sure whether that meant property values in the area were declining or not.

Hey BP,

I have two questions regarding a deal that I am looking into. 

1). The owner who is looking to sell is using the property as a rental and he is sick of being a land lord. If the tenants are still in their lease would I have to wait until the lease was over before I could evict the tenants or ask them to move out? Or are they protected by the current lease even if ownership changes?

2). I noticed when looking up the property tax info that the evaluation has gone done over the last 3 years. Is this due to market changes or could it be from the condition of the house getting worse due to the tenants not taking care of it or both?

On another note the seller says he would be willing to do a contract for deed on the property. Would it make sense to take a contract for deed and just wait until the tenants lease was up and then either rehab it or pass it on to another investor to rehab it then?

I am glad I stumbled upon this thread. I have recently contemplated putting out signs in my area as additional marketing along with my direct mail campaigns. I have been back and forth between hand written and typed signs but form the overall consensus it seems that the hand written ones may be more effective. I will have to give that a try and see how it goes, hopefully it will lead me to my first deal!

How do you go about checking your local ordinances regarding putting up the signs? Who would I need to contact to find that out?

Thanks @Nikki Robinson for the post and to everyone else for all of the great information here on the thread!

Gothcya!

Thanks @Account Closed

So there has been a lot of discussion about properties which have more than 4 units and how they are considered "Commercial". So in this sense a commercial property is in essence a multifamily whereas a Single Family Home can consist of up to 4 units but then can be described further as duplex, triplex. etc.