All Forum Posts by: Tye Glover

I am doing some research for a thesis I am writing in a real estate class on seller partnering i.e Investor partnering with the seller of a home where investor pays for the improvements on the properties in exchange for the seller giving 50% of the ARV of the home plus the cost invested, back to the investor post the sale of the property. Has anyone had any experiences, positive or negative, in partnering with sellers and if so, could you tell me:

1. the BRV, 

2. the AVR, 

3. the investment amount Materials + Labor, 

4. the final selling price and your profit from the deal? 

5. Pros and cons of the deal

6. whether the seller was under financial duress or not

Any details you may be able to provide would be greatly appreciated.

Thanks

Tye

Hi All,

Flipping is a new area for me, one in which I am trying to do my home work in a serious way. Based on books I've read, I've been able to identify a number of calculation to consider when reviewing a property and have come up with the following list:

Risk Reward Calculation

ROI

Payments

Cash Flow Velocity

Equity

My question is could anyone suggestion additional mathematical calculations/formulas I should consider as well as target ranges (if possible) based on low, medium and high costing investments.

Thank you for your review and consideration.

Tye

Hi All,

This is my first venture in flipping properties to the point at which I am simply investigating the opportunity to see if it's right for me. I have a question I am hoping someone can help me out wit and in involves the prospects of ROI relative to the property type.

I've been reading through a number of different blog post about ROI but have not be able to gleam a definitive answer to this question.

In reviewing several post about ROI, the post were specific to an ROI for a specific property value type. I am therefore trying to see if I can develop a matrix for property value vs ROI.

I am therefore wondering if it is possible to arrive at a target ROI matrix based on home market tiers. For example if we break homes into three groups of low cost, medium cost and high cost neighborhoods where the values of the properties differ and therefore so to does the investment, could anyone suggest the bands of expected ROIs that would potentially use?

Example:

Property Value: Low ROI Medium ROI High ROI

Lower Value:                            <=10%                                >10%, <=20%                 >21%

Medium Vale:                           <=20%                                >20%, <=35%                 >35%

High Value:                               <=25%                                >25%, <=40%                 >40%

 I may be trying to overly simplify a matrix but was wondering if anyone's experience could lend any insight to this question.

Thank you for your review and consideration.