Flips - Posted by DeiDei (PA)

Posted by Chenel_MD on February 08, 2000 at 10:32:40:

#1) Go straight to the owner.

#2) There are different values in real estate. The assessed values are the values obtained by the county in order to tax the property. This is usually based on square footage, lot size and any other improvements on the property. They can differ from the fair market value. The fair market value is the value of the property based on the selling prices or comparables around them. What you need to do is determine your fair market value of your prospective properties. To do this you should complete an market analysis. The transfer values are the prices that the current owners purchased the property for.

After you have determined the fair market value determine who you are going to flip the property to. If it is other investors, then you know that you have to have the price at about 40% below the fair market value. If you plan to flip to buyers you can come up on your percentage a little. It also depends on what type of work the property requires and how much it will be worth after the work. Remember in real estate, money is not made when you sell the property, but when you buy it. In other words you have to buy it appropiately or else you will have trouble selling and or renting it.

Flips - Posted by DeiDei (PA)

Posted by DeiDei (PA) on February 08, 2000 at 08:27:07:

Good Morning Everyone,

  1. I’m trying to start the process to do my first flip, but I’m not sure what to do. I found an abandoned property that
    the owner acquired in the late 80’s, he hasn’t done anything with it; taxes are current on this property; Market value $65,000/assessed value $20,800. When I looked up the information on it…it said c/o Name & Name. Must I go through Name & Name or should I bypass them and go straight to the owner?

  2. Another abandoned property I located was transfered in the early 90’s, taxes are also current. I’m not sure what to offer for the property. The specs went something like this…transfer value $80,000
    assessed value $21,760
    taxes $1797
    Where did these numbers come from…are they real values?
    If the transfer value is $80,000, how then can the assessed
    value be $21,760? What do I offer for this property? Please keep in mind that I’m a “Newbie” and trying to learn along the way. Thanks in advance.