Good Profit Potential - Now What????
Newbie is looking to do a Rehab Project. Myself and my partner are just getting into RE investing the Rehabbing way...
A bird dog found a place that is vacant and is in need of repair. Here are the numbers:
ARV: 75,000 (conservative from comps))
Estimated Repairs: 20,000 Holding/Closing Costs: $10,000 (over estimate)
Profit: $20,000
Max offer: $25,000
Price with finder's fee: $22,500
Now, these seems like a good deal here - is there anything I am overlooking??
How do I get started? I want to take this off the bird dogs hands - how do I go about this?
I want to make sure of his comps, estimated repairs, etc. What is the order in which I should go about getting things done?
Please help - Time Sensitive...
Thank you!
This is quite Intimidating and exciting all at the same time... 
Matt
Have your bird dog give you a copy of the paperwork he has on the repairs and take it to a handyman to verify the figures. If he doesnt have any hard numbers, then get an estimate and verify. A lot of the beginner bird dogs I have run into just throw the estimate number out of the air with out getting any real estimates. Also dont forget that if the estimates come in to high, you can always tell the bird dog to get the price lowered with that paperwork.
Good Luck,
Kyle
Should I get a handyman/contractor to look through the house before I make an offer? Or should I make an offer with a contigency "upon satisfactory inspection"??
How you want to go about the inspection depends on your seller. If this is a foreclosure property, the less contengencies the better. The flip side is that you need to likely pay your contractor to look though a house you might not buy.
If it is a modivated seller you should have them in the palm of your hands. It likely doesn't matter here because the homeowner wil do what you ask of them.
I'm not sure if this is the answer you are looking for but so much of business depends on a variety of factors. GOOD LUCK!
Matt,
If your looking for help with rehab numbers I would be glad to look over the list of repairs for you and depending on where it is possibly take a look at it. I am a GC located in warren county am relatively new to REI and am looking to build contacts so feel free to email me at **Please See My Profile** and we can talk it over.
Jonathan
Before you get all wrapped up into this, I have seen no mention anywhere that you have contacted the seller, what their circumstances are, how motivated they are, etc.
Houses don't sell themselves, people sell them, and there a million vacant houses out there with sellers that have absolutely no motivation whatsoever.
You need to first contact the owner, and then screen them for their motivation with questions. THEN go through all the steps of evaluating the property, its resale value, repairs, etc. Until you are dealing with at least a moderately motivated seller, there is no deal
Good luck, Dave
Quote:
On 2004-02-24 13:49, JFGNJ wrote:
Matt,
If your looking for help with rehab numbers I would be glad to look over the list of repairs for you and depending on where it is possibly take a look at it. I am a GC located in warren county am relatively new to REI and am looking to build contacts so feel free to email me at **Please See My Profile** and we can talk it over.
Jonathan
Jonathan - I am interested in talking to you about REI. Please see my profile and get an e-mail to me so we can discuss some things about rehabbing.
Thank you,
Matt