All Forum Posts by: Dustin P.

This is hit or miss in Phoenix, although I'd say all the big players do not require an appraisal. I have heard of them ordering a BPO for a tough comp, but typically they seem to just comp the property themselves and then lend 80 to 90% of purchase price depending on what they see.

For here in Phoenix it would be around $6k on the low end to maybe $15k on the higher end (Super high end homes I'm sure go well above $15k but I've never dealt with those myself)

That includes

Cabinets: $2500 to $6000

Countertops: $1000 to $5000

Appliances: $1200 to $3500

Backsplash, faucet, sink, etc.: ~$500 to $1000

Flooring always in my flooring budget, paint in paint budget, lighting in lighting budget, etc.

Best tip I can say is rehab to the level of the comps. Don't spend $10k in a kitchen where all your comps are level 1 granite or formica, cheap cabinets, countertop material as backsplash, white appliances, etc.

I just remodeled my own kitchen and went a little higher end and spent around $14k. If I was flipping the house I think I would have been around $11k. I would have not done as many custom cabinets, not done higher end quartz, no black stainless on appliances, etc

Sounds like a wholetail to me. Close it, net 20% of market value.

@Jimmy O'Connor I agree when you hit a big fee there's usually a lot that goes into it. For example I have a colleague that bought a house for $10. The guy was going bankrupt or something along those lines and wanted to show as much of a loss as possible. The house was worth $350k+. Should he only take a $10k fee on that?

There's always the alternative of finding your own deals

You could be held in breach of contract by not closing, but I highly doubt he would go after you for that. He will probably take your down payment and resell to the next investor.

I would tell him ASAP if you plan on exiting. The quicker you forfeit the property the quicker he can get it resold and if does not incur any holding costs (IE you're not bailing on him the day before closing so that he has to now buy it, buy insurance, etc.) then maybe he will refund your down payment

Although with you wanting to exit the deal just because you don't like how much money he's making, when you loved the deal previously, I don't know that he will refund you. I'm sure if he was making $200 you wouldn't be as concerned.

If I bought a property for 70% ARV minus repairs I'd probably sell it for 82%-85% ARV minus repairs

I take a purchase contract with sales price left blank, COE left blank, and everything else filled in. I bring a blank SPDS (Seller's Property Disclosure Statement) and a LBP (Lead-Based Paint) if applicable. I also bring an off market disclosure for unrepresented sellers which has them acknowledge that they are selling the property for under market value, that I intend to purchase the property in order to make a profit, etc. to cover myself. 

Depending on the discussions we've had I may bring some fixed up comps vs. comped that sold in similar condition / as is for cash. 

 Then you really shouldn't be putting houses under contract.

I would suggest being mentored / bird dogging for a wholesaler that has cash and the ability to close deals and bring him the houses you find with motivated sellers for him to get under contract. Do this until you earn enough to be able to close the deals yourself.

You'll be giving a lot of houses back to people IMO at this stage and that's not the way it's done

You can also get your license to have another avenue for deals. If they aren't distressed and not super motivated to sell their house for cash at below market value you can list it for them and earn a commission that way

You should always have a proof of funds

I'd like to know how anyone on this site buys properties at way below market value while at the same time ensuring that the public is protected and that the seller gets absolute top market value for their house. Can anyone explain this to me?