Selling A House Before Being Rehabbed
I recently purchased a house for $220k from a wholesaler worth $275k. The day I closed, I put my For Sale sign up in the front yard. I sold it an hour later to a couple who lived in the neighborhood with their parents. Make sure to put your For Sale By Owner signs up the day you close. It will save you thousands by not having to pay realtor expenses and house payments if you can sell it quickly yourself!
[ Edited by JeffreyAdam on Date 10/31/2004 ]
Congra!
Is the house so messed up and needs a lots of fix? just curious![ Edited by world888 on Date 11/01/2004 ]
Did you pay Cash for the property or a Mortgage? If you paid Cash, then I see no problems. If you got a mortgage, then how do you get around the appraisal issue? Also, did you sell it at FMV or slightly below it?
Thanks
Jeff,
Congratulations on a great result. I certainly agree that advertising for a quick turnaround can be a good first exit strategy.
I'm curious though...
Your purchase seems to fly in the face of the rehabbers well-accepted MAO (maximum-acceptable-offer) formula of ARV (after-repair-vaule) * 65% - costs.
By your figures, this deal could have yielded a very slim profit had you not lucked out with such a quick sale.
Did you have some insight that allowed you to pursue such a relatively slim profit margin?
Jeff,
Great response that covers just about all the bases.
Actually, knowing that you are a sophisticated and savvy investor, I suspected such motivations were behind this.
I just wanted to help shed light on some of the considerations which allow a smart investor to deviate from the accepted "common wisdom".
Well done and, once again, congratulations on a good result.
Thanks Perfecto:
I have bad news, I met with the sellers and found out they are illegal immigrants and were dreaming. I am going to show 2 more people on Sat. and then put it in the MLS and start marketing it...
Thanks for input again!
Jeff Adam
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