Property Rehab: Fixer-Upper and Construction Talk

Hello everyone my partners and I are looking to buy REO'S or any houses that meet are criteria.We pay a finders fee of $4,000 at closing not after the rehab is finish. Here what I said we pay are finder's fee at closing.

Criteria:
ARV between $300,000 to $600,000
Comps: 5 Sold, 3 Pending,3 Active
No Fannie and Freddie Houses
No multiple deed changes in the last 12 months
Atleast 200 photos of the property
You pay earnest money(We reinburse at closing)
We pay for appraisal
We Prefer vacant houses so we can start the rehab asap
Property must be under contract
Contact us to get approval before you contract
Formula to figure what we buy:
(ARVx.65)-$13,000-Repairs=Buy Price

Example:ARV is $400,000 and Repairs $75,000

I have a line on a house that is a large duplex, vacant, three bedroom two story each side. It is in an absolutely poor part of town. I mean, a block away there are four wooden crosses on the side of the road. The house next door looks just as horrible, but there are people living in it! Looks like Detroit!
Anyways, this guy from this liquidation company is selling it for $15k. I offered 5k and he didn't take. Is this a house that is something to consider?

Here is a tip I have been able to take advantage of on a few fix and flips that made me an extra $15-20K, especially if you have a good contractor. Anytime you have a covered patio with a concrete floor you may want to take a look at the expense of adding three walls and finishing it off to add more square footage. Typically the cost/ft^2 will be 1/3 of an addition because the foundation, roof and one wall are complete, and if you are in an area where homes sell fore more than $100/ft^2 an average 20X20ft^ patio could easily add $40K to the ARV and cost less than $15K to complete. This works especially well on smaller <1000ft^2 homes that you can get cheap due to their smaller size.

Hope this helps!

When doing the 25:1 strategy, and making offers at 70 to 50 percent off the ARV, where do you figure in rehab costs? Does anyone that is closing deals now have a practical system on including rehab costs when submitting a multitude of offers and still leave enough equity in the deal for the end buyer? Especially properties that appear to need a major renovations. Any input will be greatly appreciated.

I found this article on Yahoo Real Estate that was written by By Tonya Hillukka.
I hope you enjoy it.
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1. They know how mature plants will look year-round.

Hello DG aces,

Wanna quick and inexpensive tip to improve those Musty Nasty Dark Basements? This will make a big difference when you are wanting to improve the sell"ability" of a home without having to put in major costs of completely rehabbing basements.

When you come across a property that you are flipping and you want to get in and out of the property quickly but the dungeon basement that is full of cobwebs, musty smells, and dark menacing walls is keeping people from seeing the true potential of the basement.

Hello All Your Rehabbers,

Here is an article on yahoo I found that I thought might interest you.

Secrets of house flippers
Yahoo! HomesBy Marcelle Sussman Fischler | Yahoo! Homes – Fri, Jun 8, 2012 10:56 AM EDT

When it comes to revving up a home’s curb appeal, house flippers, remodelers and stagers have the inside track. Rather than spend a fortune to make a home a standout in the current real estate market, go for the tricks professionals use that give the most bang for the renovation buck.

Before jumping into your first rehab you need to do an in-depth evaluation. Not only of the property or the neighborhood or the real estate market. You need to take a hard look at yourself. What are your strengths and shortcomings? What do you do well and where do you need help?

Before you start rehabing it is imperative to have your own financial house in order and a power team lined up Jumping into rehab without a solid foundation will make it very difficult, if not impossible, to succeed.

Choose Your Weapon

Rehabs fall into three basic categories: personal use, rental, or flip. Each type carries a different level of risk. My recommendation for most people is to start by a house for their own personal use. It carries the least amount of risk since you will not have the added carrying cost of a second property. If you live in the house while you are ]renovating it, you just have your regular living expenses.