Posted by Brent_IL on February 13, 2002 at 16:24:10:
I think profit expectations vary from rehabber to rehabber, but many look to double the money they have in the building. If the ARV is in fact $120,000, and the costs stay within budget, $60K seems about right.
It was the foundation that worried me.
Wholesale Deal Structure, Please Help! - Posted by BoY
Posted by BoY on February 13, 2002 at 12:03:48:
I planning to make a wholesale offer to a property in a nice neighborhood. The property’s FMV 120K and is listed for 99.5K. The property was listed last year but was taken out because it needed foundation repairs (due to large trees and plumbing problems) and termite treatment. It was newly listed again early this year. I heard that it need plumbing and electrical repairs. Since there’s a plumbing problem then I can assume that somehow the inside was flooded at some point and could have a potential problem with molds. I’ve been asking around about how long it would take to remediate a house with mold, and they said from 6-9 months? Is this true? This will surely affect my offer price due to holding cost.
Also, can anybody share their purchase contract with me? How should I structure this deal? I’m looking at offering the seller 60K? Too low or high? This is my first wholesale offer and not sure what should really be on it.
Probably too high. Check true costs. NTXT - Posted by Brent_IL
Posted by Brent_IL on February 13, 2002 at 13:24:42:
nt
Re: Probably too high. Check true costs. NTXT - Posted by BoY
Posted by BoY on February 13, 2002 at 13:51:31:
I have allocated 20K for rehab. Seller already fixed the foundation and put in a new carpet.