Re: Air… - Posted by Heather -Tx
Posted by Heather -Tx on October 04, 2003 at 01:07:47:
Woot got that big one 
This if all works out and sells quickly will be my first homerun. Got the contract on it tonight.
Gotcha… - Posted by Lou Pohl
Posted by Lou Pohl on September 29, 2003 at 09:23:42:
Gotcha, I’ve been through the same thing. I’m working on a rehab right now in fact. Unfortunately, on your current deal where the property is worth around 300k, by the time you buy it, fix it up, hold on to it for 6-12+ months, etc. you could easily be into it for 240k or more depending on how much foundation work it needs. Nothing wrong with that - sounds like a juicy profit for you - but you probably shouldn’t expect to make more than 20% of FMV on the deal. That’s about what I’ll make with the strategy described in this thread, with a lot less work and hassle as far as I’m concerned. I’d like to move away from doing the rehabs. That’s just me, you might love it. =) But I guess my point is that when you buy a property at 50% of FMV you usually need to put a lot into it, sit on it for awhile, etc. in which case you don’t make anywhere near what it looks like on the surface. In that case my type of deal is more appealing to me. If you could really buy properties for 50% on the dollar, carpet and paint and turn around and retail it at FMV that would be awesome … but as far as I can tell those are few and far between.
Re: Gotcha… - Posted by Heather -Tx
Posted by Heather -Tx on September 29, 2003 at 17:40:31:
Actually yeah , I do enjoy the rehabbing aspect
On the 313K ARV house I’m trying to get now (If only their lawyer okies my papers… I wonder if I need to show up with a baseball bat! LOL) It’s actually more like 60 cents on the dollar.
Numbers would read about like this
ARV 313K
If I buy sub2 185K Cash 175K
15K repairs (Only needs about 12 peirs, and sheetrock and tile where it cracks)
Holding time on this one is figured in at a year, even though at my arv I think I can get it sold faster. Soo…
ARV 313K
Aquired for 175K
1K for hazard Insurance
Closing 3,051
15K Rehab (Max)
14% Interest (6 months 14,242 or 1 year 28,483)
Est CLosing on Resale 4,695
Marketing 1K
At holding 6 months I would be looking at a profit of 88,711 Or for 12 months of Holding 74,470.
That’s about 25-28 percent I believe. But I guess I like the comfort of knowing that IF I got into a bind, I could sell and make money no matter what. I’m not the risk taker that many successful investors are that I know… someday maybe I’ll get there. Or then again, maybe I’ll be 60 and finally getting to renovate one of those 1800’s Victorians I would LOVE to do! =)
For me, It’s all about doing… no matter which path you decide to take. Sure beats the heck outta sitting on the sidelines wondering what would have happened had I only tried =)
Btw, I do still like your plan as I said before and hopefully you will be very successful at it.
Heather Zaal
PS I’m dead tired today… so hopefully my numbers above were figured correctly… I’m having a brain fry day!~