Posted by Mark-NC on November 29, 2000 at 19:13:47:
Roberto,
If your numbers are even close, thats way to skinny of a deal for a rehab. In all reality you will be lucky to break even on this deal.
You shouldn’t pay over 15k for it tops, other wise you may be setting yourself up for a lesson that will make you a smarter investor on the next rehab.
Mark
what about this deal? - Posted by Roberto
Posted by Roberto on November 29, 2000 at 18:43:20:
Seller owns property free and clear. Wants 30k, owes 4600 in back taxes. Sherriff’s sale end of March.The place is trashed!!!
Say I pay her 25k, tops. She pays the taxes. Carpet-2000, Siding-2000, Electrical-1000, Trash removal-1000, Paint-2000, Clean, exterminate-1000, Windows-1000, Carrying costs, 1500. I hire out all of the work. These figures are conservative estimates- I think I can get away with less than this.
The house is worth 49900-52000 if it’s fixed up. Let’s say I sell it for 47900, after agents and costs, I get 41637. That’s a net of $5137.
Have I covered all the financial bases? Is this a deal worth doing? Thanks!
might try this - Posted by doug,ky
Posted by doug,ky on November 30, 2000 at 07:25:07:
Owner wants 30K. Arrange a meeting with the seller and go over the deal (overall condition of the property and the costs assocaite with rehab and marketing the property) At the right time, inform the seller that the deal is not good enough, and when they ask what you had in mind, open a brief case full of tens and twenties ($10,000 - ?) and spring it on them. Cash is a great motivator. Plus cash buyers don’t pay asking price.
SKINNY…SKINNY…SKINNY - Posted by Barry G
Posted by Barry G on November 29, 2000 at 19:51:42:
I’d offer her $1.00 CASH! then it may be worth it but under the circumstances you described I’d be looking for some better deals. They’re out there.
Go Get Them!
Barry G