Posted by SCook85 on January 14, 2001 at 09:00:33:
I use this method frequently, however you have to have a reason behind your $15,000 repair estimate. I wouldn’t dare assume that $15,000 would accomodate repairs in some neighborhoods where I live. I do use $15,000 frequently but that number is used with small homes that I am very familiar with, and I’m familiar with the cost of renovating them. It would be hard for me to spend more then $15,000.
Best of luck with the method. It has worked well for me.
Posted by Alex S.FL on January 13, 2001 at 23:06:02:
I just want to get some feed back on something a new aqaintance of my mine is doing and it seems to be working quite well for him. I was going to try it myself. ARV-70%-repairs(15,000)=offer price. The trick is to make the offers first and see who’s motivated and save drive time gas etc…, upon acceptance go look at the houses and adjust my numbers if need be or just backout. I am aware I am missing a number of deals but I am trying to generate some cash (flip them). The 15k is just a guestimate, so I would have room to flip and profit for the flippee. Also the numbers are hovering around 50-60% of ARV should I be concerned about the margin? (to big of a spread)not that there could be in REI.
P.S. Theses offers are being presented by two or three realtors who claim not care as long as it meets my critiera and are aware of how “investors” work.
Forgive me if I sound nieve but I’m stumbling through as fast as I can. Need to feed my family.
Thanks for everybody’s input. This web site will and is saving me from J.O.B (Just Over Broke)
You can ask questions like “does it need a new roof” or has the kitchen been updated in the past 5 years. You can figure paint and carpet. But you will also miss deals of subject to/owner financing if you don’t ask questions about motivation. Low ball offers will bring you some deals but you can eat higher on the hog if you delve a little deeper.