All Forum Posts by: Stacy Griffith

I totally agree and I am going to get a real estate license once I have made money from deals....I see it as a great asset to invest in.  I am a developer in the making, but I have to start somewhere right?  Thank you so much for you advice.  I do have a question,  as a builder what's the minimum to maximum percent of a listed price are you willing to pay your agents to tear down and rebuild in your target area to maximize your profit margins?  for research purposes 

 I definitely will Wayne

 Thanks Amanda I will

Hey Jay, initially I thought it was a waste of time too but I'm thinking from the standpoint that if I can even save them a couple thousand dollars it's worth it to me for the following reasons:

It's the first potential deal I've received and even if it's not viable, I still get great practice and I learn something new. 

I can build a relationship with the listing agent to get pocket deals by letting him know that the profit margins are not appealing and dangle incentive carrots for him to do better.

I get my feet wet in numbers for that niche market

I can continue to build a great relationship with my builders by showing them initiative because they are who I aspire to be

Grow my network of buyers because they know other builders in thier category and better

When I have receive off market deals, they will know I'm definitely an asset because I save them even more.

What do you think?

Sqft for the new custom homes in the area depends on the lot sizes which varies.  I am going to do some more research and determine the average price per sqft for all the comps and work with all the numbers to figure it out

 The average cost for these custom builders are about $300-$450+/sqft depending on thier clients budget.  They typically build 2 levels plus finished basement everything high end.  

Ultimately, my goal is to create an efficient formula to estimate ABV (after build value) and MAO for future situations like this because I already have a network of builders that I have rapport with. Ive painted a few of thier projects and they were quite happy with my work.

I will take your advice and dig deeper, thank you!

I certainly will do   thanks!

Hello everyone,

I searched the forum for an answer and couldn't find it.

I recieved a lead on a listed property and am working on my first deal. Ive been going over the numbers and would appreciate any feedback.

Seller has 2000 sqfoot home circa 1980 in an amazing established neighborhood.  Asking price is 700k.

Quite a few lots have new middle class custom homes.  Comps average at 980K for similar homes that have been revamped.  I have not seen the property in person.  I know a few people personally who would buy, tear down and rebuild  to match the newer builds in the area.  Comps for the new builds range between 1.2M and 2.5M.  My guys average budget to build is 400k.  Their projects are amazing. 

What's the equation for a scenario such as this?  I want to wholesale this deal but without repairs how do I make this work?  I really want to do the deal with these investors because they build on average 30 custom homes annually and would most likely be introduce to the other custom builders in their network.  I have no doubt they would buy my deals as long as it meets their criteria.  

How do I calculate NBV ( New Build Value) MAO? and My fee?

I understand how to find ARV for everthing else quite easily, What am I missing?