Not quite sure of my options here so I'm reaching out for help and suggestions. I am new to the DG world of investing and am finding it quite exciting,and entertaining and flat out one big huge rush!!! While my main focus is on wholesaling and looking for deals to lock up and then assign to a buyer it seems as though other opportunities open up. This is actually my first opportunity for a possible deal. Here's the situation:
Single family home, 3bdr. 1bath, 1300sq.ft. located in high end school district surounded by nicer homes in the immediate area. This property is currently listed with a realtor which is why i'm not sure what to do seeing how i cannot do an assign here and i do not have the funds to buy, and i have asked a couple of people if they were interested in buying,not successful with that either.
I have gone thru the property and took a qualified contractor with me who does rehabs. he estimates between 6-8,000 to rehab.I have not submitted an offer yet, waiting to make sure what to do:
Here's the numbers: FMV= 124,200
Rehab= 8,000
asking price= 72,900
my offer= 62,500
Also here's how the listing has been posted:
5/11/11 = 113,200
6/24/11 = 99,900
7/27/11 = 89,900
8/25/11 = 72,900
Advertised saying bring your ideas and make this property yours!
Needing help as to what to do!!Thank-you !
You can assign listed properties if you want to wholesale. You just have to make sure you're using the right contracts and that the contract is assignable.
If you do decide to wholesale, you have to figure out what the ARV is. (ARV is not the same as FMV) and try to assign the property at 65% or 70% of the ARV (depending on what your buyer(s) prefer).
For example, if a property you're interested in has an ARV of $200,0000, the the formula for your maximum offer would be this:
70% of 200,000 = $140,000 - repairs (let's say about $10,000) = $130,000
$130,000 - your assignment fee (let's say $10,000) = $120,000
Max allowable offer is $120,000. Of course, you don't want to offer that high when you first submit your offer. Offer less so you have room to negotiate.
Hope this helps a bit! Good luck!
In Christ alone, I place my trust.
Hello I assume your flipping this one, you have cash buyer list set up to flip it to, the ARV is 124k the best bid would be $56,484 at 66%. would net you around $12,400 profit, plus I always figure in 3% closing and 2500 lawyer fees just to cya cost. Is the property paid off? that would give you more options....Good Luck
"Action and Mistakes" always-outweigh "Analysis Paralysis"
http://www.linkedin.com/pub/john-hoening/23/2a3/164
"Action+Knowledge=Success....$$$$$$$$$........Just do It"
www.WeFlipDesMoines.com http://facebook.com/desmoinesinvestmentproperties
www.iowarealestateflipper.com
You can assign properties that are listed with realtors. The properties that are difficult to assign are the REO (real estate owned) especially HUD, Fannie Mae, etc. Those you could still do your due dilligence, work your numbers and comps (comparables) and possibly birddog the property.
For the one you are speaking of, you may want to get some comparables as well to see what has sold that is similar to this property with sq ft, BR/BA, and within a certain radius for location.
I also recommend listening to an archive call with Dean and Matt Larson, most recent one with Matt (I think), as they talk about the details they include when wholesaling to get more for assignment fee, some of it comes with experience, which I'm still learning.
You may want to find yourself a realtor as well to help with contract, etc. Don't hesitate to put in an offer, make sure you have 'and/or assign' after your name on offer. I know some put in offers via email to see if counter or respond to it then write up more of an in depth offer with the contingencies, not too sure on this but there's plenty of people and info to find this out.
Carol Stinson has an awesome wholesaling website so check that out too.
Wish you the very best! Put in an offer! Oh look up the tax assessed value too if possible. I would probably offer even less but I don't know all the info.
Blessings,
Cathy L
Search the forums for double closings and assignments of contract. You'll find a bunch of good information. You CAN do assignments of contract with a listed property. A realtor may tell you that you are acting as an agent and other stuff, but as Dean says, "Are realtors licensed real estate attorneys?" The realtor who says things like that is JUST AFRAID TO THINK OUTSIDE THE BOX, is probably uninformed about those strategies, and is probably someone you don't want to work with. As cmloose said, check out realwholesaling.com, there is an article on there called 10 Tips to Build Your Wholesale Buyer's List.
Don't let other people tell you, you can or can't do something!
Good luck! Let us know how things turn out.
RENinja
"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee
DO NOT give out the location of the property to anyone ever! EVER! Until you get it locked up with a contract. There a people who will go behind your back and steal your deal.
Thanks to Kareng for this reminder!
RENinja
"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee