Ready to make first deal but need some advice

You need to get some comps for that area. Second, do you have a buyer in place to assign the property to? It would appear that there is a little equity in the house but not much. Zillow at times can be right on or far below or too high. It is best to check with other sites as well.
Back to the assign point. If you do not have a buyer ready to assign it to, you must have exit clauses in the offer to protect yourself. I would do some more research before you proceed. Just my 2 cents though.....Jan

Hey Jan,

Thanks for the reply. I will look at other sites to see what their estimates are, but I just went back to Zillow and put in information for comps.

Here's what comes up now:

On 8/6/09 one house sold for $108,000
On 8/18/09 one house sold for $122,000
On 11/05/09 one house sold for $105,000

So now the Estimate Total looks like this:

$123,000.....Original Estimate
$0...........Home Facts
$0...........Home Improvements
$86,313......Comp Selection

Total Estimate: $209,313 with a value range between $169,000 - $236,500.

So, again how do I figure the FMV to make a good profit on this deal. And to answer your question on the buyer, I may have one in line, but I need to now if I'm doing this right.

You lost me with your figuring. I just wanted to tell you about zillow their estimates are usually way too high. I use deans Real estate analysis and take the lowest estimate to do my planning. Keith Success be with you!

Just like Jan said, you would want to get the comps for that area and then you'll have an idea of what the FMV could be. You would also want to do a walk through and see if any repairs need to be done to the property. If there are repairs to be done then get an estimate of the cost and deduct it from the FMV. Then, you would want to checkout what the FMV would be ARV. That way you would have an idea how much you should pay for the property and what you're profit margin could be. This is where a good REA comes in play to help you with the FMV and ARV. eg...

Sellers price: $116,000

FMV: $130,000

Cost of Repairs: $5,000

$116,000 - $5,000 = $111,000 <-what you want to pay or less

ARV: $140,000

This way you could make your $2,000 profit or more when you pass off the contract to your investor or buyer for $113,000 or more. Hope that helps. Good Luck.

D'Angelo

I am very, very new to this. I bought Dean's book, and LOVED it, but now the problem I am having is how do I start? I am not sure how you all begin to make some sort of initiative on starting a deal. I am 25 yrs old and have always been interested in real estate this is why I went and bought Dean's book, but again needed help as to where I should start. Hope someone can help me out. I look forward to ANY suggestions to someone that really has NO MONEY at all to get started on his first deal.

Right now I'm looking at a 3 family flat in Detroit

$50,000/Negotiable

I'm not sure how to begin from there. I'm looking at a lease for the 3 family flat can anybody give me any suggestions??? Also can anybody tell me more about No Money Down program

Don,

Thanks for the reply....that makes since.

The property does not need any repairs, already has new A/C, roof, water-heater, disposal and more. Even has a fresh coat of paint.

So, I guess if I offer $105,000 and turn around and assign for $115,000, I could walk away with $10k in my pocket...correct?

Yes you could, but you need to find out first the FMV. When you pass it off to your investor or buyer they also have to make a profit. So if the FMV is...say $150,000, you paid $105,000 then pass it off to your investor or buyer for $115,000, you make your $10,000 and your investor or buyer will make $35,000 after closing. Hope that helps. Good Luck.

D'Angelo

Thanks again and yes that makes a lot of since.