All Forum Posts by: Jeremy Ferguson

@Brandon Howliet you can find the Assignment Contract under Resources > Fileplace here on BP but you may have to customize it to meet your needs.

For the Joint Venture Agreement you can go here: http://www.biggerpockets.com/forums/93/topics/1610...

Scroll down to the 4th post by David Sicherman and you can use that as a starting point.

Thanks guys!

@Jay Hinrichs In this scenario she doesn't want to list it and have people coming to look at the property. She wants a very simple transaction and quick so she can downsize and move on.

I am starting to see where having a license could be a benefit as I go meet with different sellers. Right now my goal is to wholesale a few properties but I am planning to cast a wider net very soon.

Thanks to everyone for their help and suggestions!

Thanks @Will Barnard I am looking at about $350k for the ARV and about $5k for some paint and carpet cleaning.

@Will Barnard I think you're right. I had another conversation with her and it sounds like she doesn't want to go through the process of selling a home traditionally or have people coming through the house. 

I am wondering what percent would make sense before giving her a figure. I know 6% is too low but with little repairs needed (touch up paint and carpet cleaning) I think 70% of ARV is too low. Would it make sense to go in at 80% if I am looking to wholesale this to another investor?

What would you do in this situation?

I try to go into every deal with an open mind. For the most part I am looking to wholesale but if we can get it at a good enough price, I am open to other options. I know she wont for for 70% of the ARV but I think it's a matter of finding out what makes sense for both sides. She isn't concerned with money for the most part as the house is paid off. She understands there is a price to pay for the convenience, I just need to figure out what makes the most sense.

I may speak to some local cash buyers and see what their thoughts are.

I think this would be referred to as a turnkey property but please correct me if I am wrong.

Have any of you come across motivated sellers that live in nice homes that need little to no repairs. I get that most homes need something but to be honest I have come across a woman that has lost her husband and is looking to down size into a condo which she has already picked out downtown.

She isn't in a huge rush but she says she wants a simple process and doesn't want to deal with a realtor.

Whether or not this opportunity pans out I am curious what you have all come across. This would only make sense for the seller up to a certain point. Selling at a 6% discount would allow her to speed up the process of selling her home at the cost of realtor fees. But beyond 6% I really cant think of any reason why she or any other seller would want to sell at a discount when the house can literally be placed on the market the next day for retail.

This home is in a fantastic neighborhood on a golf course and is well kept up in great condition, updated appliances and only about 9 years old.

@Johnna Lodge thanks for th input! I actually spoke with him a few hours ago and he said he has several offers from other investors and they are much higher.

I am assuming these investors were scouting the property for a while...

@Ned Carey  This particular area is the old section of Raleigh. What we call "Inside the Beltine". There could be a 1400 sqft ranch that hasn't bee updated since 1970, right beside a new 3,000 sqft full renovated home. It's a highly sought after area of town and most people hang onto homes in this area or build new homes on the property they own. It's not your typical cookie cutter neighborhood where all of the homes look similar.

This particular property is the worst looking home on the street. It's literally being swallowed by the trees and shrubs around the property and you can barely see the house from the street 35 ft away. I am factoring in a lot of costs for the yard and exterior of the home to make it more presentable. But I am wondering if I should be factoring in a full renovation throughout or just making it presentable.

Yes of course I have a resume and a professional LinkedIn page where she can see my face and work history. I didn't know if I should send her anything else. My day to day work is very different from this, so I was hesitant to include it.

I ended up sending her my LinkedIn profile and then two references in the real estate industry for now.

I am very familiar with how the 70% rule works and have read several posts about other variations of the rule. My question is for you other wholesalers out there.. 

When you are estimating your repair costs what are you including?

ARV * .70 - Repairs - wholesale fee - MAO

Take this property for example...

- 200k ARV

- Dated bathrooms and kitchen but everything is in good condition

- New carpets needed throughout

- Paint

Would you include everything necessary to get this property fully updated? The real question is are you including "Repairs" or "complete rehab" in your formula?

This is where I am confused when running the numbers to make an offer, I have come across a few properties that are in good condition but are just dated. So would you just factor in carpets, paint... etc. or price out everything under the sun? (new bathrooms, all new kitchen cabinets, countertops, appliances..)