Flipping - Posted by Marlon (OH)


#1

Posted by Bud Branstetter on January 27, 1999 at 10:25:30:

As an investor I would want to make 15-20K profit after repair costs if I am going to put out the cash out do the work and take the risks. On a higher end house where I had to put out more cash I would want a liitle more profit. With an 80% figure, I could not do the repairs and make the profit. If you find a novice that is willing to fix up for less profit, you’ve done good. Just don’t expect them to stay in business long. Sooner or later they will come across one that needs a new furance/ac that wasn’t planned for,extra holding time, or something else that wipes out the profit.


#2

Flipping - Posted by Marlon (OH)

Posted by Marlon (OH) on January 26, 1999 at 21:26:03:

What is the correct percentage of the FMV I should negotiate when putting a house under contract which I will later flip? Is it always between 50-75% or can it be higher like around 80%?

Thanks in aadvance for your answers. And thanks for the tons of information and experience that I gained from this site.


#3

Re: Flipping - Posted by Stacy (AZ)

Posted by Stacy (AZ) on January 27, 1999 at 10:51:53:

Marlon-

Bud gave you a good answer, but I want to emphasize that you shouldn’t be using a calculation of “percent of FMV” to calculate your offer. Determine FMV, subtract fix-up costs, rehabber holding costs, $10K to $15K (acceptable rehabber profit in my area), and your assignment fee, and you have your MAX buy figure. Whether this comes out to be 40% or 70% of FMV, it doesn’t matter.

Stacy