All Forum Posts by: Justin Seng

@Jimmy O'Connor did you make it to the meeting or hear any news about how it went?  Thanks! 

@Wayne Brooks Good point Wayne didn’t think of that side of it. 

@Wayne Brooks  Sorry if I wasn’t clear. The house is vacant so I was thinking pay off the back taxes now.   That will get the owner out of delinquent taxes.  Fix the house up then sell it with an agent and offer the the homeowner a percentage of the sale. I’m not even sure if that’s legal or possible that’s why I’m asking. 

@Wayne Brooks I actually was thinking of using this as a backup if the seller wouldn’t except 70K. At 70K offer I think it would look like this for home owner

70K - 10k Taxes - 4200 realtor fees - 2500 closing costs = ~53K for home owner. 

The other way home owner get ~62K 

@Wayne Brooks I hear ya Wayne. I was thinking it would be less out of pocket structuring it this way. I would only have to pay 10K taxes and rehab cost estimated at 40K. So that’s 50K out of pocket instead of 70K purchase and 40K rehab 110K out of pocket. 

Also if it is done this way I think it would save the home owner money on realtor fees and closing costs since their would only be 1 sale.  We would pay the realtor fees and closing costs after the fix saving them around 5K. 

Is it possible to structure a fix and flip deal like this....

Off market house. Owner owes $10,000 in back taxes.

My offer...

Pay back taxes off now and offer home owner 40% of the fix and flip sale price.

Numbers...

Sale Price 155K

40% of 155K = 62K (To home owner)

155k

- 62k (To home owner)

- 10K (Delinquent Taxes)

- 9300 (6% realtor fees)

- 3500 (closing costs)

- 800 (Lawyer fees to write up contract) guessing this price right now.

- 1400 (Holding costs)

= $68,000

$68,000 - rehab costs = Profit.

Am I missing anything?

Thanks!

Is it possible to structure a fix and flip deal like this....

Off market house. Owner owes $10,000 in back taxes.

My offer...

Pay back taxes off now and offer home owner 40% of the fix and flip sale price.

Numbers...

Sale Price 155K

40% of 155K = 62K (To home owner)

155k

- 62k (To home owner)

- 10K (Delinquent Taxes)

- 9300 (6% realtor fees)

- 3500 (closing costs)

- 800 (Lawyer fees to write up contract) guessing this price right now.

- 1400 (Holding costs)

= $68,000

$68,000 - rehab costs = Profit.

Am I missing anything?

Thanks!

@J.R. Coffin Thanks for the offer I’ll let ya know if I don’t find someone! 

Anyone know of a good affordable architect that does work in DELCO PA? Specifically looking for plans to be drawn up for a 2 story addition.

Whats up @Richard Miller jr I invest in Delaware County PA. Feel free to reach out. Good luck!