Is 70% ARV less repairs realistic - Posted by LIT

import · May 23, 2006, 2:21pm

Posted by Bob Smith on May 23, 2006 at 16:52:24:

Where are you? Here in FL I know some guys who occassionally get properties at 50-60% ARV, but not minus repairs.

import · May 23, 2006, 2:21pm

Posted by LIT on May 23, 2006 at 14:21:38:

Is any one buying at near 70% ARV less repairs.

I’m in Little Rock. Homes here built between '50-'95, 1000-2000SF, in middle income neighborhoods retail for $65-$100/SF depending on the neighborhood. I have several methods in place to obtain leads, am getting several calls a day, but 70% ARV less repairs seems like a long shot. Even the wholesalers here all want to sell their properties at 75% ARV or greater (repairs included).

I know this formula doesn’t work in all cases, and I do use my own formula to analyze each deal. Usually, though, my formula comes out real close to 70% ARV less repairs.

If you are finding properties at 70% ARV less repairs in a market similar to mine, your input would be appreciated. Maybe I need to adjust my criteria, or maybe my lead generators need some work. Or, just maybe this whole 70% ARV less repairs is what looks good on paper, but is an unrealistic goal.

regards,

LIT

import · May 24, 2006, 8:14am

Re: Is 70% ARV less repairs realistic - Posted by Natalie-VA

Posted by Natalie-VA on May 24, 2006 at 08:14:42:

LIT,

I don’t use the percentages. It’s too skewed depending on what price range you’re in.

I just use real numbers:

What are the costs to buy it?
What are the costs to carry it?
What are the costs to repair it?
What are the costs to sell it?
How much profit do I want?

–Natalie

import · May 24, 2006, 6:19am

Re: I have bought less then 40%ARV less repairs - Posted by Celeste

Posted by Celeste on May 24, 2006 at 06:19:09:

many times but did not want to come off as a brag.I’m in south west fl.I have been doing this fulltime for many years.My name is everywhere,so people who need to sell fast know how to get in touch with me.Thats all there is to it.

import · May 23, 2006, 3:05pm

Re: Most of the ones I buy are lower then that - Posted by Celeste

Posted by Celeste on May 23, 2006 at 15:05:16:

I buy in the 50-60% ARV less repairs and I have more deals then I can handle.

import · May 23, 2006, 3:04pm

Re: Is 70% ARV less repairs realistic - Posted by Joe

Posted by Joe on May 23, 2006 at 15:04:16:

Just start making offers and see what happens. You’ll never get anyone to say “yes” by wondering if 70% is too low.

I’ve seen evidence of properties with ARVs of $90k going back to lenders for $30k owed on them in Ohio. I don’t know what repairs are, but if another $30k covers it, then that’s less than 70%.

import · May 25, 2006, 4:18pm

You got it, girl! - Posted by george

Posted by george on May 25, 2006 at 16:18:01:

Newbies hop on this magic formula like it would apply to all houses.

I have made money on an 80%er, a nice house that needed very little, whereas one of the worst deals I ever got in to was a junker at less than 40%ARV.

The magic formula is only a guide, it must be fostered with common sense.

george

import · May 23, 2006, 8:44pm

Re: Most of the ones I buy are lower then that - Posted by LIT

Posted by LIT on May 23, 2006 at 20:44:15:

Would you care to share with me how you obtain leads on properties 50-60% of ARV. I’m not in your area, so no threat.

Regards,

LIT