All Forum Posts by: Account Closed

Alright J Scott, but im a little confused. i know the buyer puts down his earnest money with the contract but when does it become non refundable, immediately? Just to make sure does the end buyer(rehabber) usually get an inspection period? Im only asking because I dont know and i want to do what is customary, if you say not usually then i'll make sure we require no contigencies. Thanks a lot brother.

Hey everyone, I actually have another question if you guys would be so kind as to help me brought it. When I meet the homeowner to contract the deal should I bring my own contract, have him sign it and give him a copy or should I have him have his attorney review it first. I just want to know if attorneys would tell their client they're selling the property too low or try to buy it themselves.

Also I have 6 serious rehabbers that want this deal. So what's to stop one of them from contracting with me putting their EM down, just to tie up the deal and trying to renegotiate once they find out how much money I'm making. As I said I'm probably going to max my asking price at $145k and with 80k in repairs and a minimum ARV of $335k it's still a slam dunk for them, but I'd like to prevent this if I can. Thanks for all your input guys.

I'll keep you guys posted. Thanks for all the input.

Actually Keith, this deal is in Westfield. Union County

Hi Will, thanks for your input as well my friend. Since I became a Christian I stopped believing anything was impossible. As long as the repair numbers are correct, which I will verify, we'll be all good. I really just wanted to know if its okay for me to sell this deal for the standard 70% of arv even though I'm making a boatload of money at that number. If it checks out I probably won't ask anymore than $145k, that way I pass a little more off to my end buyer. I'll keep you guys posted. God bless.

Great advice Glenn, so tell me if all numbers are correct (I'm talking repairs, I know the arv is accurate, checked the MLS), what should I sell this for?

That's good to know Glenn, under contract for $100k.

Hi guys and girls,

So I have a pretty great deal. It's in a very desirable town and neighborhood. It's a 3 Br 2 ba and the lowest comp in the area is $335K and everything is averaging about 350ish. It needs new plumbing throughout, a new roof, kitchen update, 2 baths updated, floors and paint. The floor in one of the rooms is also slightly slanted. I don't know repairs but I estimated and hope 80K would cover that work and anything else necessary. It doesn't need to be gutted to the studs. I just want to know what I should sell this deal for. I could go with the 70% minus repairs formula and sell it for about $150K (that's also using the lowest comp and not considering that everything in this house will be brand new, a rehabber could probably pull the higher 350K) but at that number I'm making an insane amount of money for a wholesale, although I've heard of people making these profits on wholesale deals before. I just would like to know because even at the 150K mark, the rehabber is still going to have about a $105K spread before he pays everyone, I would think on a worst case he would pocket $60K after the transaction is done. Any advice is appreciated everyone. Thanks.

I understand Wayne, that does make sense. The way I look at it I'm going to find these deals anyway so whether or not anyone shows me how to rehab I'm going to find deals so do you suggest I raise my own funds, do my own rehabs and not ask these guys for anything? What about the guy that I mentioned in my original post who's interested in partnering on a few deals in the future. If we are partnering on a deal then yes you are showing me the rehab process but I'm also coming up with the deal and bringing money to the table. When it's all said and done I just want to know the best route that I can take to transition from wholesaling 2 to 3 deals per month to rehabbing at least one of those deals myself. Thanks again to everyone.

So you guys think I should let a rehabber make $80-$100k in exchange for him teaching me to rehab. If I'm a rehabber and I'm serious and I know I have a guy in my local market that can find killer deals I would want him on my team,I would show him the business and create a relationship with him where I'm getting what I want and he's getting what he wants. The book of Ecclesiastes says "money answereth all things". I wouldn't want a guy bringing me killer deals and I'm making all this money and he's not for the promise of making money later when I could be showing him the business cultivating a relationship with him where he wants to bring me all the deals and we both make money.