All Forum Posts by: Jay Dewberry

Hmmm...perhaps use the rehab estimates to justify getting the property at a lower asking price. Even if you contract at...let's say 85K, and spend $25 on rehab, it sounds like you'll benefit either way...good rents or a 45K+ profit on the market.

I have to agree with most here, $500/mo in cashflow is pretty good to me. Plus if your goal is long term buy/hold, then over the years as the loan (if you have one) is paid down, the cashflow will increase. Also, you could perhaps add value to the home as well, which could improve equity and justify higher rents.

Hi Kyandrea. Check the Bigger Pockets File Place. Perhaps you'll find a contract template you can use. That being said, it may benefit you to instead consult an investor friendly closing attorney (or title company depending on your state) and have them review your contract or draft one for your investment needs. 

I would say it depends on the List Price. But why stop at 10%...why not 30%+? You goal is to analyze the numbers and make offers based on what your investment strategy is to the point were it's beneficial for you and/or your end buyer. If it ends up being what the seller considers low, you'll have the numbers and market analysis to back up you reasoning.

Hi Jonah. For a more practical look at estimating your rehabs, people on BP generally recommend J. Scott's book on estimating rehab costs found here. It focuses on the cost ranges for most rehab issues which will give you some insight on how to perform a better "guestimate" to use in the BP calculators. But knowing the labor/material costs per unit of measurement helps as well. 

In instances such as this, you will most likely end up doing a double close. Many REO contracts don't allow assignments. The way to facilitate your goal is to locate an investor friendly closing attorney (or title company depending on your state) that handles simultaneous closings. You'll need Transactional Funding for this as well. You'll basically close on the property (as a buyer) using Transactional Funds, then turn right around and close again as the seller...selling to your end buyer.

Hi Doug, congrats on your potential deal. I don't have much to add, however my only thoughts are to possibly consult with a Realtor to get advice on market trends, CMA's, average time on market, and just to be safe rental trends as well. Also, it couldn't hurt to have a second (or even third) contractor to come out and put their S.O.W. bid in too. Another set of eyes could be beneficial in the long run...especially with your current work schedule...it may be needed. Lastly, if he's started at 15K, he may go even lower than 10K. Perhaps start at 7.5K and meet .him in the middle somewhere...to judge motivation. Just thoughts. Hope all works out.

I'm a little confused by what you're trying to do. Were you bidding on an auction, or perhaps you mean your Realtor has submitted bids on MLS that keep getting outbid? If so, that's just the normal reaction for a seller...highest bidder wins the contract. Perhaps look for deals that have been on the market for a longer time, or have your realtor run broader searches for motivated sellers in your investment perimeters. Just a thought.

As much as physically possible. But honestly, it would depend on the exit strategy to me. In wholesale deals that require rehab, I try to look for enough equity to make it worthwhile for both me and the rehabber in case they too want to flip or hold for cashflow.

Hi @Khadijah Celestine. Congrats on the potential deal. Does the owner own the property outright or is there an existing mortgage? Have you run the numbers to see how the property will perform (assuming you're holding for cashflow)? I'm not an expert, but those terms (especially the high interest rate) seem to benefit the seller more-so than you. Also, you should be able to put what reasonable contingencies you choose in your contract. In fact, it seems to have that in the Due Diligence portion.  I will defer to other members more seasoned on the type of strategy though. Either way, good luck.