OfflineThis question is about the offer formula that Dean had talked about that, if Im not mistaken, Matt Larson generated. On the offer formula when deducting for "market adjustments, commissions, closing costs. etc etc.... What is the starting point? I think that I had read in there maybe in one spot where it said you want to start your formula at the LP (or asking price). Or was it the estimated value. I know that the estimated value is just relative but wasn't quite sure all the same. If anyone has read the book and knows what I'm talking about or just knows the answer, I'd really appreciate it. I'd hate to be asking for too much!!! Thanks again
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Sean Bearden
Shui the Builder
You can view Dean's last live webcast here: http://www.edgelivecast.com/watch/replay/.
In that, Matt gave us his updated criteria for finding properties and making offers.
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
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This is good, and exactly the type of info I was looking for about the 25:1. Thanks.
Marc
New REI in SWFL!
Starting to come together for me. Dean shared in this video that he wants to be at 75% of FMV after rehab because he's buying, holding, and renting out the property. And from what I gather, fix and flippers typically want to be in at 65% of FMV after rehab.
Which is great. So that being true, here's my question:
When you're submitting offers using the 25:1 strategy, and you're getting offers in on as-is, vacant, and recently price reduced properties, you're not actually going to see the homes. So your offer isn't going to include rehab, is it?
Do you just get the offer accepted and then estimate repairs, and renegotiate the offer? This info would really help me because I intend to be out submitting offers on perfectly matched houses by the end of this week.
Because he said point blank, "No I don't want to look at it. I'll look at it when I have someone interested in my offer."
Thank you in advance,
Marc
PS. I'm guessing "Fair Market Value" and "retail" mean the same thing, right?
New REI in SWFL!
http://www.deangraziosi.com/real-estate-forums/contracts-and-offers/8995...
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
Thanks. It was pretty useful I ran some of the numbers. My question is what about leaving out rehab in your offer, or should you just bite the bullet and estimate 25 properties? Is there anyone here not including rehab in their initial offers and making it clear in the purchasing agreement you'll do it after acceptance?
Marc
PS. Yes I am pretty relentless with this question. Haha ;-] Prob end up figuring it out on my own.
New REI in SWFL!
Thanks that makes sense I agree with you.
Marc
New REI in SWFL!