Wholesaling Property
I have a couple of leads on properties that will require extensive rehabbing. What are fair percentages and/or markup amounts that will make these apealing to a rehabber? Need to make sure there is enough room for all to make their fair share.
Any info is appreciated,
Dan
Typically this is what I use here in Michigan:
70% x ARV - repairs = Sellable Price
Example:
After repair value = $100k
Repairs = $15k
70 % x 100k - 15k = $55k
So you would want to buy somewhere below $55k.
Where are the homes you have found located? What condition? Owner occupied? bank owned??? Details?
The properties are mainly in Pontiac. I am very familiar with this area and which parts to avoid. The prospects I have been researching are non-occupied, some are condemned.
The main prospect is fitting that formula nicely. I haven't secured it yet, as it is going through probate and I am not sure how fast it will be available. But the blunt of it is:
FMV $55k
Repairs - quoted $6.5k from seller, but I think it would be more like $15k.
I could be able to sell it for about $26k. It is a corner lot and does have a second lot that would come with it, which is already split and has its own PIN. It is in a nice neighborhood close to I-75, M-59 and Great Lakes Shopping Mall.
Get me what you are looking for and I'll see what fits your needs.
Dan