OfflineI have a question for the group on how you calculate your offers.
I'm focused on bank-owned properties, but I guess this applies across the board.
I have been using the following formula:
low end: ARV x 50% - REHAB cost
high end: ARV x 70% - REHAB cost
So, if I figure the ARV (after repair value) at $150K and the property needs $20K of rehab, I will offer between $55K and $85K.
I usually do a double check by running all the closing, holding and rehab costs, plus commissions and interest for HML and other investors. This gives me a range for the "potential profit".
What do you all think? How are you calculating offers and running your numbers?
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Hi Steven
I am using the formula provided by Nathan Street one of the Success Academy Coaches on the following DG.com link:
Offer Formula: http://www.deangraziosi.com/node/3975
You may want to check it out. It will answer your questions.
Be well,
Joe