Re: Help I’m new to this - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on April 19, 2002 at 17:07:41:
Mike gave you the details, but left out a couple of little things; your hard money will barely cover the acquisition costs. You would still need the $15k in repairs available to you from another source; cash or credit to pay for materials, labor, and incidentals.
So you have to get a hard money lender, have available the extra money to rehab, and monies available for any cost over-runs or holding costs; and hope your estimate of $8k doesn’t get eaten away by any or all of these things.
I guess I shouldn’t even mention that you might have to accept $100k instead of $105k if the market turns. No, I won’t bring that up because you are probably wondering if you would have to pay the closing costs for the buyer if they can’t do it on their own and you need to sell quickly. No, I won’t mention that because that means you have turned into what everyone is looking for; the motivated seller.
For a net 7.5% profit over the retail price, it doesn’t seem like it is worth the risk.
What was it that Mike said so eloquently in his sujbect change…? Yes, I will mention that; PASS!!!