Need opinions on possible deal.... - Posted by Charity

Posted by JoeB(Atlanta) on April 25, 2000 at 21:29:05:

Hi Charity, the formula we use (similar to LeGrand’s) leaves much more for profit AND buying/selling/holding costs.

ARV: 95-99,000 (let’s say $95k), minus
Rehab $15k, minus
BSH $14k (we use 15% of ARV for buying/selling/holding costs), minus
Profit $15k (we leave $1 to $1.25 of profit for each $1 of rehab), EQUALS
Max Allowable Offer (MAO) of $51k.

Best of success,
Joe Brillante

Need opinions on possible deal… - Posted by Charity

Posted by Charity on April 25, 2000 at 20:00:11:

OK, this will sound really remedial, and I may not have all the numbers I need. I need some guidance. This would either be a wholesale or retail deal.

ARV: 95-99,000
Offer Price would be: $65,000
Repairs: $15,000

As an agent, I feel VERY confident that this home would sell within a couple of weeks tops. I just sold 3 other listings like it in the same county within days. Anything under $100K is going fast.

My main question is how I would get enough money to cover repairs and purchase from a hard money lender? The most I’ve found they will lend is 70% of the ARV. Am I missing something?