My first flip/rehab deal - Posted by Bryan

Real Estate Investing
#1

Posted by Michael on December 14, 2000 at 22:55:07:

Hello. I am not an expert but have done what your trying to do.

Will the seller (investor) take monthly payments, interest only payments? From what you stated, he wants a cash sale? If so, it looks like you COULD make a profit. $44,000.00 looks good according to the numbers you posted.

What have you done to make sure you can wholesale the deal? Have you run an ad looking for investor/buyers? What type of area is the home located in? I am not trying to rehash words, but, is it in an area that people who can qualify for loans want to live? Would you live there? Would you live there with those repairs being done?

A good ad that I use is one certain people will recognize “Handyman Special, cheap, cash, your name and number”.

I congratulate you on your efforts. Best wishes.

Mike

#2

My first flip/rehab deal - Posted by Bryan

Posted by Bryan on December 14, 2000 at 22:19:24:

I am trying to prepare an offer on a $130k ARV home needing $25-30k in repairs with an as-is appraisal for $70k. The seller (investor) wants $44k because he doesn’t have time to be bothered rehabbing. I’d prefer to wholesale, because I’m afraid I’ll screw up the rehab and it’ll cost me tons…and I have no cash. What is the best type of financing to put on this property to make it easy for my investor or owner/occupant to get into and fix? Should I ask for 6 months no payments, 6 months interest only, long-term low payments? The property is currently rented month-to-month at $300, so I can’t give him less than that. I appreciate your time and assistance. V/R, Bryan

#3

Re: My first flip/rehab deal - Posted by Jen-LA

Posted by Jen-LA on December 15, 2000 at 19:14:20:

If these numbers are correct, I think I would just go ahead and rehab the thing- hire a good contractor and rehab it because you stand to make a LOT of money. Just be sure to get an estimate from the contractor before doing anything. Sounds too good to be true though, but maybe not! You never know!
-jen

#4

Re: My first flip/rehab deal - Posted by J Neub

Posted by J Neub on December 14, 2000 at 23:31:55:

Bryan, you better check the property real carefully to see if the true marketvalue of the area is 130k. If the seller is getting rid of for 44k he would have to be pretty stupid if what you say is true. I suspect since he is an investor also that you better backtrack this bulldog to see if his numbers are correct. I doubt it but let me know.