All Forum Posts by: Ron Paisley

Hello Shunda

It sounds that this property would only allow you to lose money.

I have read multiple threads concerning building a Buyer’s List. What is the best way to find active buyer’s who are pursuing multi deals?It has been my experience so far that quite a few pepole who advertise online are not active or real buyers.Can location be a factor?So for anyone who has created a solid Buyer’s List what has worked best for you?

There are several threads and articles concerning wholesaling. Im not familiar with all of them but I’m sure some of your answers are there.A few things you will need before you make an offer is a buyerlist to market your deals to and you will need to be able to evaluate a property to see if it is actually a deal worth pursing. This is just a brief synopsis to nudge you in the right direction.

This was a great thread, I learned a lot just from following it. Thanks Kenneth Lee.

I agree with J. Scott
Max Offer = ARV - Fixed Costs - Rehab Costs - Profit

This is how I calculate market value.
1. Calculate the cost per square foot of each comp property by dividing the sales price by the square footage.
2. Discard the highest and lowest comp.
3. Add the cost per square foot of each of the remaining comps.
4. Divide it by the number of comps I have used. (This gives you the average cost per square foot for all the comps.)
5. Multiply this number by the number of square feet in your subject home.

Example:

Sales Price Sq.ft. Cost Per Sq. Ft.
195,900 2300 $85.17
189,700 1979 $95.86
205,000 2225 $92.13
180,900 1995 $90.68
200,900 2290 $87.73

Avg. Cost Per Sq. Ft. $90.18

Average Cost Per Sq. Ft. x Property Sq. Ft. = Market Value
$90.18 x 2,000 sq. ft. =$180,360

Rich Dad Poor Dad. I Found it to be very inspirational.

It’s been my experience that it’s easier to invest in the market that you live in, but overall what’s most important is being able to evaluate the deal to ensure that it’s profitable.

Great Advice from everyone. I exspecially like the idea of following up an email via phone. Thank You

My biggest opportunity I would say is and was networking and knowledge. I started in real estate when I was 23 and bought a house during the boom. I ran into bad contractors ,underestimated the amount of repairs that were needed and my lender went bankrupt. I have since then increased my knowledge and understanding of REI. I'm now able to evaluate what is a deal and what is not. I have expanded my network of professionals. I don't have all the answers but, if you have a question I can answer I will be more than willing to give you feedback. I do think it is important to learn from other people’s mistakes. It’s easier to go down a path of success than it is to blaze your own.