OfflineOk, I understand that FMV really has nothing to do with the list prices of homes in an area. I have not found super realtor to give me all the comparables yet. How can I figure FMV on my own so that I can practice with some numbers and etc? I do not think it would do any good to practice until I am sure I am doing it correctly in the first place. Your help would appreciated.
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NO is not a 4 letter word!
Decisions are a 50-50 shot: yes or no!
Use Deans newest tool. www.totalviewrealestate.com
All Cash offer 58%-62% to assign/wholesale to Investors buying at 65%-75%
Subject to/ getting the deed 75%-85%
Owner financing 75%-85%
Straight option 67%
Lease Option 75%-85%
These are the numbers I use.
ie on an all CASH offer: FMV 200 x .58% = 116K minus repairs. That's your maxium offer, so come in a little lower than that.
Jason S.
San Diego, CA.
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Dean lists several websites in his PFRERN book you can use to come up with comps for any properties you're considering bidding on. Just be aware when using the Property Assessor's site; any properties owned by banks(REOs), the amount shown is what the lender foreclosed on the property for, not what someone brought it for.
Find similar properties in the same subdivision (on the same street) or within 0.25 mile to 1 mile of the property. Parcels with large acreage, you'll have to cover a larger radius to find comps and probably have to look for comps sold 12 months ago (or longer). Use properties build in same year, i.e. 1950. Find out which systems have been updated and what amenities have been added, i.e. pool. Find an appraiser to add to your team. They appraise homes all day for lenders. So they will know which items add value and detract away from the home's value.
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Thanks Jason...
To get it right......
If I determine a home has a FMV of 200k (using your example) and I plan on making money based upon information given on IEE, I want to lock that home up with a maximum price of 116K (assuming there are no deductions). Once that is accomplished, I then turn to a buyer and offer the home to that buyer for the 116k PLUS whatever I want to make on the deal. This leads to my question....Do you have a "method" of figuring out your "fee"? I would assume that a lower priced home could not handle as much of a fee as a higher priced property. In the example above, there is 84k between where I have the property locked at and fair market value, but the farther I am below fair market value, the faster (in theory) another investor is going to move on it. With IEE, it would make sense to me that you want to move properties as fast as possible and want to keep your price very appealing, without cutting your own profits in the process.
NO is not a 4 letter word!
Decisions are a 50-50 shot: yes or no!
You can mark it up 5-10% for your fee.
You also need to know your area & what investors are buying at.
If your going to buy & rehab yourself, then use the factors that I put above & you'll be totally safe.
If your wholesaling, You can also try to look at the lowest comps that investors are buying at & come in just under those comps to give room for your fee.
Jason S.
San Diego, CA.
**All CASH House Buyer!**
Refer Us To Neighbors, Friends & Family, Earn $1,000
LIKE my FB page http://www.facebook.com/JandBHouseSolutions