Reassignment Deals

Robert -

Here is the formula I use for all of my assignments:

When I do my assignments, I give an offer that is this forumula:

.75 x ARV - repairs - your fee x 2

So for example:

Owner is asking 65,000.00 for the house. After all repairs are made the house is only worth 75,000.00

75,000.00 x .75 = 56250.00
56250.00 - 5,000.00 (for repairs) = 51250.00
51250.00 - 10,000.00 (I want to make 5k on the house x 2 for negotiating room)

Offer = $41250.00

Destrie

Again, great info. Thanks for sharing.
Serena

Destrie i just wanted to say thanks for the break down for the assignment offers. I am still reading alot of post and going back to the books. And just hoping i can find my first deal. Thanks

Oh why not use the 65k as of 75k??? Thanks

Formula. I don't think I have seen it done that way. You're really not factoring at 75% if you're adding 2.

KimmyJ
Press on...

Basically (this is the way I was taught by one of my mentors) is that you factor in enough negotiating room with the seller as well as the buyer when doing assignment deals. I've also heard of using FMV x the percentage you are willing to pay minus your assignment fee x 2.

use conservative methods to keep myself from ever getting in over my head. The numbers don't lie. It's either a good deal or not.

KimmyJ
Press on...

From an investor point of view they are looking to make 18 to 25% return on their investments. What dean is teaching us is how to find killer deals at 30 to 75% off the value. So if you are getting them anything higher than 25% then you are already getting them a great deal. This is just what I have learned from being around some investors when I wasn't interested in investing then. Also from what I gather you charge what you want for your services in finding the killer deals its up to you.

Hey, Thanks for the info.

Thanks.