OfflineOriginal price of house was 245K their asking price is 120K. (X) County appraised value is 218,040. House needs repairs. 2012 taxes are 5954.16 that need to be paid by Jan 31st.
I ran across the owner who is trying to sell it himself. Any suggestions. I'm waiting to hear back from my business partner about repair estimates.
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Sounds like a good deal if u can lease option it, bring in a buyer with $7,500 down and will take it "as is" The seller might be motivated enuf to sell this way. Rando
Rando
then I take my fee out of the difference in what taxes are owed and the 7500?
sorry, im just new at this and would potentially be my first deal? how would i make the offer as a lease option?
For beginners with no money down Dean teaches wholesaling by assigning contracts. i would just stick to that at first. Lease options require strong negotiating skills and you would have to know what your doing.
ok. that was my first thought as well. If I do it that way, should I just follow the formula in dean's 30 day book? im thinking i should offer what he is asking for less the rehab est cost. then mark it up to my end buyer for my fee? is this correct?
For wholesaling, what the house is worth today determines if it's a good deal or not. Original price has no bearing. The simple formula is ARV (After Repaired Value) X 65%, minus repairs, minus your fee = Offer
So assuming ARV of $218k and $20k in repairs.....
$218,000 ARV x .65 = 141,700, -20,000 in repairs, -$5,000 fee = $116,700 offer.
Above numbers based on assumptions.
perfect! Thank you so much. will update with some news once speaking with owner. Thanks a million!!