OfflineDG Fam,
Matt Larson mentioned before about making offers on the MLS and not being greedy and getting so into the discount. Ok, he mentioned about possibly getting a deal on a 100k ARV home for 95k and making a 5k profit. Wouldn't that be homes already renovated? I ask this because homes are being bought close to retail price, and even overpaid for in ATL. So does he mean making offers close to the asking price and passing it on for a quick profit in between?
Bernard
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Yes, they would have to be homes that are not in need of extensive repairs. In that scenario, you would have to wholesale the $100k because if you hold it to do some repairs and then relist it, you are going to lose your profit in closing costs.
Like Dean always tell us, you have to find what is your bottom in the whatever market your investing in and find where the top is then just make sure you buy just a little below under the bottom and that would be your profit for wholesaling. So even if properties are going for asking price or over asking price just make 25 offer just below the asking prices and get one accepted. You also might be in a competitive market. Are you working bandit signs?
Reynold Orozco
Working with MLS properties can be a easy way to find properties and can hence justify a smaller profit margin. It really depends on your business plan and how you want to work your business. Just remember that extreme low ball offers will create a sketchy reputation that could flare up and burn you down the road.
It is very important that you have the right buyers for properties like the example you mentioned. SPECULATIVE BUYERS!!! How do you find them? 90 day cash sold lists from your agent.
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site