Posted by Kristine-CA on March 26, 2004 at 22:54:46:
FS: real comps come from an agent or a title company. You want recent sales for similar properties. Then you want to compare their square footage and features. You might want to read the article on doing your comps by JP Vaughn in the articles section on this site. Hope this helps. Sincerely, Kristine
How much to charge an investor on a flip?? - Posted by FS
Posted by FS on March 26, 2004 at 19:59:06:
Hey i found a motivated seller willing to sell her house for a chash payment of $60,000. The house is valued at $110,000 and is in great condition. She also paid off her mortgage so she owns the house. My question is will an investor be willing to pay $60,000 all cash to the homeowner and also how much should i get out of the deal…is $20-15,000 out of the question??? thanks for any help anyone can provide.
Re: How much to charge an investor on a flip?? - Posted by Taiyo
Posted by Taiyo on April 03, 2004 at 16:50:31:
FS: Verify your comps immediately. If your number are true then get the property under contract.
You can have the best of both worlds, sell to end user or investor. Assignment of Sale or Flip.
I would market the property for $85,000. I do not not know what the appropriate sales commissions is being charged in NJ. Here in Southern California it is 5 to 6 %. If your area is less, then I would pay 7% sales commissions ($$5,950). This will give you a profit of approximately $19,000 less closing cost.
I would call as many Brokers & Agents in the area informing them that you will pay 7% sales commisions to whoever brings you a Buyer you can put under contract and closes.
Use this deal as the first of many to come. Get greedy you could lose all, both money and enthusiasm.
I am a Investor, Wholesaler and flipper primarily since 1988. Do it on a volume basis.
Taiyo
You can’t charge anyone if you don’t have one. - Posted by Bill K.
Posted by Bill K. on March 28, 2004 at 20:49:03:
You probably don’t have one. I have 50 ALL CASH BUYERS .I offer the deal to the highest bidder.
Re: How much to charge an investor on a flip?? - Posted by jasonrei
Posted by jasonrei on March 28, 2004 at 10:42:14:
$15k-$20k on a flip like this is definitely not out of the question.
Estimated repair cost? $10k with $50k equity - Posted by Tyrone t
Posted by Tyrone t on March 27, 2004 at 19:14:48:
As long as the investor can make 20% or more you have a good deal plus you have a buyer you can flip to in the future… Don’t be greedy, especially on a first deal
Re: How much to charge an investor on a flip?? - Posted by nick
Posted by nick on March 26, 2004 at 22:18:22:
The way you get comps is you find out what other home in the neighborhood have sold for. If this is a 3bd 2ba 1,500 sq ft home then you would look for something that is basically the same and see how much it sold for. Try and find a few good comps and you’ll have an idea of what this property is worth. DO NOT get a property under contracr untill you know what it is really worth.
Good luck
Nick
Re: How much to charge an investor on a flip?? - Posted by Brent_IL
Posted by Brent_IL on March 26, 2004 at 22:00:09:
If you’re right about the numbers and property condition, before I would attempt to flip, I’d try a quick effort at retailing by looking for someone who could qualify for an 80% LTV loan and carrying back a seven-year (?) no-interest 20% down payment. You?d probably net more than you would get from an assignment fee, and eventually someone will cash you out when they get a new loan.
Re: How much to charge an investor on a flip?? - Posted by Kristine-CA
Posted by Kristine-CA on March 26, 2004 at 20:13:31:
You can ask whatever the market will bear. I suggest, though, that you check your comps very carefully. Where did you get the value? From real comps? Or from quotes about an appraisal or tax value?
If you numbers are good, I would get it under under contract for $60K and start marketing it.
But again, if this is your first deal, make sure you know how to do comps for this property. Sounds like a good one. Sincerely, Kristine
Re: You can’t charge anyone if you don’t have one. - Posted by FS
Posted by FS on March 29, 2004 at 01:49:07:
Thanks for all the help. Hey Bill where did u find your all cash buyers. what im doing is looking in the papers for investors and calling them up to tell them about the property. i live in the NJ area.
Re: How much to charge an investor on a flip?? - Posted by FS
Posted by FS on March 26, 2004 at 21:33:48:
yes this is my first deal. how would find the comps for this property…like who should i see or do. Thnaks for the help Kristine. also any help from other people would be appreciated.